The Textile Industry Has Become A New Growth Point Of China'S Economy.

"P > China's economy has slowed down so that other emerging economies in Asia and even the world are gradually depressed, because the relaxed financing environment that helped them develop rapidly has begun to tighten.

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< p > but in fact, China's economic growth prospects remain strong in some industries with relatively few government concerns.

In these industries, private enterprises have gained an important foothold.

The index of stock exchange which is too biased to reflect the performance of state-owned enterprises may be misleading. < a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > a target= "_blank" href= "//www.sjfzxm.com/" > clothing less than "industry" can reflect this situation, although the industry has long been a pillar industry of China's economy, but many production enterprises are scattered.

After China joined the World Trade Organization in 2001, it abolished the "a href=" //www.sjfzxm.com/news/index_c.asp "textile export < /a" quota system, and the industry initially grew accordingly, during the global financial crisis (during which China also lost some labor cost advantages), but now the industry has rebounded.

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According to the National Industry Association report, in the first half of 2013, the output value of China's textile enterprises above Designated Size (annual sales volume of 20 million yuan and above) increased by 13.3% compared with the same period last year, reaching 488 billion US dollars. P

Although domestic wage levels continued to rise and global consumption remained warm, exports of textiles and clothing increased by 12% in the first half of this year to 127 billion US dollars.

However, domestic demand and production also continue to increase vitality: in 2002, 37% of the fabric and yarn sales accounted for 16%.

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< p > > a href= "//www.sjfzxm.com/news/" > Tianhong textile > /a > group is a medium-sized model in the industry.

The Shanghai company's net profit in the first half of this year has increased two times, reaching 447 million yuan (75 million US dollars), helping the company's listed shares in Hongkong increase four times in the past 12 months.

At the moment, the company has no obvious credit problems: the company with a revenue of 1 billion 200 million US dollars (it is "the list of top 200 listed companies in the Asian version of Forbes") has issued a six year senior note with a total principal value of 200 million dollars at a low 6.5% year interest rate, which will be partly invested in new investment.

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< p > Tianhong is currently entering the a href= "//www.sjfzxm.com" > cotton textile industry < /a >, the power of state-owned enterprises that once occupied a large market share in the industry has weakened, but the Hongkong family that has established multinational enterprises before China's economic reform still has influence.

According to the ranking of China's largest cotton textile company in 2012, two of the top four, Lu Tai and Yida, came from Hongkong, a former British colony.

Tianhong ranked tenth.

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In the 2012 annual report of rainbow 2012, the 45 year old, optimistic and cheerful chairman Hong Tianzhu's photo was printed. He was dressed in a sky blue suit with a bright orange background behind him.

Why should we be shy? After Tianhong stock's recent rise, Hong Tianzhu's stock is worth 800 million US dollars at present.

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< p > in view of the fact that this year's acquisition of a smaller domestic production company by US $56 million, Hong Tianzhu has seen more potential in China through integration.

He talked about China's existing 10000 yarns and < a href= "//www.sjfzxm.com" > fabric > /a > production enterprises, said: "excellent enterprises will survive, and inferior enterprises will be eliminated."

As for China's overall a href= "//www.sjfzxm.com" > textile industry < /a >, "this industry lacks large enterprises is an opportunity."

Hong Tianzhu estimated that the market share of rainbow is currently only 1%.

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P, however, he also looks abroad, and this is producing benefits.

Tianhong is a relatively continental investment enterprise in Vietnam. It started a factory there in 2006.

In addition to cheaper wages than China, there is another key advantage: Tianhong can purchase cotton at international prices. The current international price of cotton is 45% less than the current price of the protected cotton market in China. This makes Hong Tianzhu an advantage in selling a href= "//www.sjfzxm.com" yarn to /a.

Tianhong will also benefit from a series of actions supported by the US Trans-Pacific Partnership trade agreement and ASEAN countries aimed at reducing trade barriers between them.

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P Credit Suisse said in a June report that China's policy of maintaining high cotton prices for the benefit of local growers may not continue.

"In the long run, we doubt the sustainability of the Chinese government's policy because it clearly distorts the supply and demand of the market," the report cautioned.

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