80% of the enterprises in the hottest textile prof

2022-09-19
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Eighty percent of enterprises in textile towns have stopped production.

"if you say too much, it's tears." The lyrics are reflected in reality

Yangzi River textile Co., Ltd., which survived the economic crisis but was unsustainable this year, had to enter a semi shutdown state. From the beginning of August, the workers in the factory have received shift notices one after another. The largest textile enterprise in Chongqing used to be bustling, but now, only the spinning machine lies quietly in the huge plant, looking empty

"by August, 80% of textile enterprises had stopped production." Xu Xingquan, director of the economic development office of Huilongba town government, a "textile town" in Chongqing, is symmetrical. According to the survey data of the town, this town, which once accounted for 50% of Chongqing's total cloth production, now has less than 100 textile enterprises struggling to support

on the other hand, the bad days of steel enterprises that almost lost money in the whole industry will continue. Wang Xiaoqi, vice president of China Iron and Steel Industry Association, said a few days ago: "now is not the most difficult period, and it is estimated that the fourth quarter or next year will be more difficult."

data can speak, and the manufacturing industry seems to be falling into a cold abyss

data released by HSBC on August 23 showed that China's HSBC manufacturing PMI preview value in August was 47.8, a nine month low. This time, it is the new export order index, which hit a 41 month low of 44.7; The manufacturing output index fell sharply to 47.9 from 50.9 in July, the lowest in five months. In addition to these two items, each sub item also fell back to the "shrinking" and "declining" areas

"small and medium-sized enterprises are having a hard time and the situation of shutdown is intensifying. The state should adopt some powerful policies to support small and medium-sized enterprises as soon as possible." Zhou Dewen, President of Wenzhou Association of small and medium-sized enterprises, who saw enterprises perform tragedies and comedies, shouted loudly recently

there is a serious shortage of orders

the road is empty, pedestrians are rare, most of the doors of roadside shops are closed, and the telegraph poles not far away are covered with notices of plant rental and transfer

newcomers must not expect that this lonely town once produced 20% of the country's total output and 50% of Chongqing's total output based on the manufacturer's technical plan. In 2011, there were 645 local textile enterprises still in normal production and operation

this year may be the most difficult year for the leading enterprises of polyurethane insulation materials to take the lead in self-discipline and reverse the chaos in Longba town for more than a decade

"no order." Xu Xingquan said that although only 20% was used for export, Huilongba town was seriously affected indirectly, "the export was not smooth, and many powerful enterprises invested in the domestic market, resulting in a significant reduction in domestic orders."

according to local media reports, according to the previous normal months, Yangzi River company alone processes 30million meters of cotton yarn every month. But since this year, the processing business of 15million meters of cotton yarn can be received at most every month. This is also the case of Chongqing's largest textile production-oriented enterprise. In Huilongba Town, there were 373 enterprises with an annual output value of less than 5million yuan as of last year

enterprises with insufficient orders and poor sales and no profits have to choose the path of production suspension. Affected by the European and American crisis, enterprises that have to move to emerging markets are also troubled by orders

in Hefei, a saw blade manufacturing enterprise received an order of 100000 US dollars from an Indian buyer, but whether to accept the order has become a big problem. "The Indian currency continues to depreciate, the exchange rate of the US dollar is unfavorable, and the buyer may refuse, which is too risky; but if it does not accept the order, the enterprise operation may encounter problems." Mr. Zhang, the person in charge of the factory, said

"a large number of small and micro export enterprises are on the edge of profit and loss because of the increase in operating costs and the decline in profit margins. The problem of being unable to take orders and being afraid to take orders is becoming more and more prominent. The lack of confidence in enterprise development and the ability to take orders makes it difficult for business development." Zhou Dewen said

weak demand is obviously more prominent than the production side. Quhongbin, chief economist of HSBC China and co head of Economic Research Asia Pacific region, said that the new order index, including domestic and foreign demand, hit a nine month low. The pressure on enterprise inventories rose, and the inventory of finished products rose to the highest level since the HSBC PMI data series in 2004

"the initial value of PMI in August fell by 1.5 percentage points month on month, second only to the 2008 financial crisis." Said Cao Shuishui of China Securities Research Center

the "life and death line" of manufacturing industry

the accelerated contraction of new orders and new export orders index is only one of the problems encountered by the manufacturing industry. In fact, the continuous decline in the output price index of industrial products, the accelerated expansion of finished product inventory, and the operating rate from high to low are all factors that enterprises cannot bear the impact, which means that a structural system is subjected to instantaneous load

in mid August, an investment team, led by Zhou Dewen, traveled from Wenzhou to Ordos to discuss investment matters with the local government. This team is composed of Wenzhou enterprise bosses. At a time when enterprises cannot expand, investment is embarrassed, and private lending is in crisis, developing new investment has become an inevitable option

"in fact, fewer and fewer people are willing to do real economy." Zhou Dewen said. Cao Shuishui said, "the economy has not stabilized, which is highlighted by the sluggish demand season and the continued slowdown in external demand. Destocking continues."

in this regard, quhongbin said: "manufacturing business activities are still in the doldrums. The decision-making level should strengthen policy incentives. Only by promoting the recovery of infrastructure investment can we achieve the established policy objectives of stabilizing growth and ensuring employment."

in fact, the effect of monetary policy, which is frequently used at present, is not obvious in the real economy

in the past week, the central bank invested 365billion yuan in the open market through reverse repo. According to statistics, the total amount of central bank bills and positive repurchases due in the open market that week was 33 billion yuan, and the amount of reverse repurchases due was 120 billion yuan. The actual net investment in the open market was 278 billion yuan, which became the second highest level of net investment in a single week since 2012

"due to the insufficient investment and consumption in the real economy sector, and the pattern of soaring short-term bond prices and volatile commodity prices in the financial and factor markets, loose monetary policy simply cannot be transmitted to the real economy sector to generate effective demand. Monetary policy has entered the era of 'liquidity trap', and further stimulation will bring huge sequelae of liquidity flooding in the future." Sun Lijian, director of the financial research center of Fudan University, said

On August 22, the State Council held an executive meeting and decided to cancel and adjust 314 departmental administrative approval projects. This time, of course, the focus is on the approval projects in the field of investment, social undertakings and non administrative licensing, especially those involving the real economy, the development of small and micro enterprises, private investment and other aspects

"whether the Chinese government will further stimulate the weak economy by adjusting the direction of monetary and fiscal policies has become the only good material for the market today." Sun Lijian said

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