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Strong RMB Weakens Export-Oriented Textile Players

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Despite having coped with the abolition of export quotas, textile and garment industries mainly based on processing and export-oriented business, are feeling the impact of RMB revaluation. Exchange rate is directly affecting most of the companies.

There are 58 listed textile and garment companies, which have in all lost around US $9.57 million from exchange rate, while in 2005 they had gained $1.15 million from exchange rate. Their losses from exchange rate increased $10.7 million in 2006, up 9 times.

Among the enterprises who have announced annual reports of losses from exchange rate, the net profits of the top 10 enterprises totaled to nearly $56.9 million in 2006, 26.9 percent over previous year.

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