September 23, the central bank lowered the benchmark interest rate loans and some commercial banks reserve ratio.

The central bank announced that from Sept. 16 down from a one-year yuan loans to 0.27 percent benchmark interest rate to 7.20 percent, taking the benchmark interest rate unchanged; In addition to the workers, farmers, construction, transportation, postal savings bank not to cut apart , And other agencies lowered the deposit reserve ratio by 1 percentage point.

Comments:

A decline in interest rates for loans to the textile sector have a limited impact on the overall level of profits, but the debt ratio of the enterprises to benefit from significantly higher. Youngor leading companies, shares of Vosges, Ordos, Lu Tai A, such as shares and the public debt ratio of 60% (08 of the medium-term), should benefit from declining interest rates. If in the future “rate” to a further decline in the positive sense of concern.

At present, trade financing problems faced by non-lending rate is too high, but credit the uneven distribution of funds: a small number of high-quality enterprises to obtain bank credit line higher utilization rate is very low; a lot of money and the difficulties of small and medium enterprises are difficult to obtain Bank loans have turned non-higher cost of borrowing, the financial industry so that the difference between the cost of the polarization even worse. Recently the Ministry of Finance’s proposal to improve the environment for SME financing, but the results are to be seen.

August-line clothing and textile industrial added value growth rate down to below 10%

August textile-line 8.9 percent growth in added value; clothing manufacturing sector grew by 9.4%; the two sub-sectors of the January-August cumulative growth of 11.8 percent and 12.1 percent.

Comments:

Textile and apparel sub-sector added value growth rate down to 10% are below the same period last year decreased by 6.8 and 6.7 percentage points. From March 2007, the added value of on line all the way down year-on-year growth, reflecting the declining degree of economic sectors. Inside and outside the industry to be the two major driving forces, exports have been subject to currency appreciation and the drop in external demand of the dual effect of depression, domestic demand in the future will be whether the macro-economic slowdown dragged down? At least a short period of time not seen any signs of warming industry.

July key retail clothing business consumption up 22.87 percent

In July 2008, focused on the national retail clothing business product sales 31,110,600, an increase of 7.95 percent, the amount of sales 6,301,000,000 yuan, up 22.87 percent.

Comments:

July key retail sales of clothing products, the amount of year-on-year growth rate of 22.87 percent, but sales increased by only 7.95 percent, which can be projected an average price of clothing products rose 13.82 percent, with the CPI in clothing prices marked a departure from the trend. As can be seen driving up prices of clothing consumption growth factors. The demand growth is limited, some of the products also declined. The statistics of major apparel products, in addition to children’s clothing sales rose 7.78 percent year-on-year, the men in suits, men shirt, jacket, cashmere and cashmere sweater sales fell 0.19 percent respectively year-on-year, 4.57 percent, 2.80 percent and 15.73 percent. Although the statistical side of the narrow, but in certain high-end clothing sales representative. An increase in demand and even slow decline, the price of products only support the high consumption of clothing is very difficult to sustained growth. We maintain the judge previously recommended vigilance in the future growth rate of domestic sales decreased risk.