Event: The media recently reported that the nation’s largest printing and dyeing enterprises in Shaoxing Martial Law Group Holdings, as a result of funding strand breaks have been faced with bankruptcy. According to unconfirmed reports, the Martial holding of bank loans and private loans of 16 billion yuan, the current creditors, suppliers in the collection, Tao Xin staff. Relevant data show that the total assets of the Martial holding 2.2 billion advanced jet, water, more than 600 sets of rapier looms and sewing more than 500 sets of equipment, with an annual output of 1,600,000 in high-end woven and knitted garments. Early in 2007 to invest more than 200,000,000 yuan to build China’s largest special wide-line printing. Martial Law Holding’s Zhejiang Province have Martial Law, such as textile printing and dyeing enterprises, printing and dyeing Martial Law in 2006, listed in Singapore. Another subsidiary of South Zhejiang Science and Technology Corporation in the United States had planned Nasdaq listing.

Guotai Junan Comment: Who pushed the closure of the textile industry, “domino”?

As the fund-strand breaks leading to the closure of enterprises in the textile industry is frequently flash, Shandong has previously cherry, a leap of Zhejiang, Shandong Galaxy more than large-scale textile enterprises, and so on down, the largest union Sanxin PTA business has been on the verge of collapse. The textile industry closures, we believe, from the industry, the textile industry for many years the rapid expansion of production capacity, excess production capacity to rely on exports to absorb, and the export markets of the rapidly lead to a large number of idle capacity; from the business, many businesses rely on high Balance investments, the credit crunch coupled with the stagnation of production, capital is bound to lead to strand breaks. Of course, the most fundamental reason for this is that domestic as well as global liquidity crunch, the financial turmoil in the real economy to reflect. We have to judge, the textile industry closures, from pre-to large enterprises, SMEs have not yet spread to an end, in the first half of next year should be the most difficult time in the industry. We have always said that the disadvantaged businesses will close down the industry to promote the survival of the fittest and industrial upgrading, but a number of high-quality large-scale closure of enterprises, in addition to banks and creditors caused by bad debts arising from the “domino” reaction, resulting in unemployment and social stability, but also to the industry And any good?