The most popular RMB appreciation slows down, and

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RMB appreciation slowed down and construction machinery overcapacity met with money shortage again. In the first half of this year, the RMB continued to appreciate. According to the latest data released by the bank for International Settlements (BIS), the RMB real effective exchange rate has risen for eight consecutive months, up 8.2% from 107.44 in September last year. A sudden shortage of money in the money market affected all walks of life. Construction machinery is no exception. The rising cost of manpower and raw materials, coupled with the problems left by the aggressive sales of the construction machinery industry in the previous two years, such as overcapacity and the surge in accounts receivable, have not been resolved, making it difficult for the development of China's construction machinery manufacturing industry

at the time of money shortage, the RMB turned around and slowed down the pace of appreciation.

just as the money shortage was getting worse, the RMB slowed down its previous pace of appreciation and turned around

according to the latest data released by the bank for International Settlements (BIS), the RMB real effective exchange rate index in May 2013 was 116.29, up 0.9% month on month compared with April, continuing to set a new high since the data was released in 1994. The RMB real effective exchange rate has risen for eight consecutive months, up 8.2% from 107.44 in September last year

however, after entering June, the RMB has changed the situation of rising for most of this year and turned downward. The RMB fell to around 6.15 against the US dollar on June 25, the lowest since mid May. On June 28, the central parity rate of RMB against the US dollar was 6.1787 yuan per US dollar. In the spot market, the RMB also rose against the US dollar following the central parity rate, but in June, the RMB still fell by 0.05% in the spot market

it is undeniable that under the unfavorable environment of global emerging markets being generally sold off, the RMB can be said to be a unique force. So far this year, the RMB has risen about 1.4% against the US dollar, about 10% against the Japanese yen and about 1% against the euro

on June 19, 2010, the people's Bank of China restarted the exchange rate reform to enhance the RMB exchange rate flexibility. From april16,2012, the central bank doubled the intra day fluctuation limit of RMB/US dollar exchange rate to 1%; Foreign exchange market trading institutions were subsequently allowed to short the US dollar for the first time

is it good or bad? How should Chinese construction machinery enterprises respond

previously, China mainly boosted its economic weakness after the global financial crisis by relaxing domestic financing and relying on loose credit, while allowing the RMB exchange rate to rise steadily. Although this approach has enabled China's economy to maintain a high level of growth, it has also accumulated a large amount of excess capacity and local debt risk. This negative impact is very obvious in the construction machinery industry. In the past two years, the construction machinery enterprises have been unable to completely get out of the shadow of overcapacity and the surge in accounts receivable

now the global monetary and economic conditions are changing, prompting China to make up its mind to adjust its development model and balance its financial policy structure. Tightening domestic policies and slowing down the appreciation of the nominal effective exchange rate will be necessary prerequisites for better balancing short-term growth and medium-term financial risks. With the policy-making authorities implementing a series of reform measures that will help improve the medium-term prospects but may be detrimental to short-term growth, slowing the appreciation of the RMB will reduce the pressure caused by weak growth

(1) strengthen enterprise cost management

Chinese enterprises participate in the competition in the international market at low prices brought about by low costs, but this does not mean that enterprises have no operating space to reduce production and operating costs. In fact, no matter in the favorable or unfavorable economic environment, enterprises should constantly seek and excavate strategies to reduce costs

cost is one of the profit sources of an enterprise. An excellent cost control model can bring enterprises profits that traditional production methods cannot bring. Today, China's economic growth mode is changing from quantity oriented to quality oriented. The characteristics of low price made in China formed over a period of time will also change. With the increase of labor and energy material prices, the increase of enterprise production costs has become an inevitable trend in the production and operation process of Chinese enterprises

for the construction machinery industry, in the face of the arrival of the era of low profit, enterprises should adopt a new business model, effectively control various costs and expenditures of enterprises, try to save unnecessary expenses and implement scientific management. To a great extent, meager profit operation is conducive to improving the production and operation capacity of enterprises. If the enterprise does not form a drum shape and can effectively control various costs and expenses, it will inevitably affect the profits of the enterprise, and then threaten the survival and development of the enterprise

(2) adjust the product structure and improve the competitiveness of export products

the key to improve the competitiveness of export products is to improve the technical content of export products. China's construction machinery export enterprises should gradually change the extensive growth mode of "two low" (i.e. the overall level of the machinery industry is low and the scale efficiency of the machinery enterprises is low) that has been followed for a long time due to the different use of each model, and focus on scientific research and technological innovation; Change the business philosophy and avoid blindly expanding the scale. To seize the market, we should gradually establish brand awareness and make long-term plans for enterprises, strive to improve the technical content and added value of products, and improve the non price competitiveness of export products. Although the proportion of high-tech products in China's export products is increasing year by year, we will continue to expand the proportion of high-tech products in export products

it is impossible for enterprises to achieve long-term development simply by relying on the advantage of cheap labor. This requires export enterprises to constantly innovate their own products, actively create their core competitiveness, and quickly change from obtaining competitive advantage by low prices to relying on labor efficiency improvement and technological innovation, so as to realize the continuous transition to knowledge intensive products while producing capital intensive products

construction machinery export enterprises should adapt to this change, timely adjust product structure and provide good services according to user needs. At the same time, it is necessary to upgrade the technical level of existing products, strengthen the research and development of high-tech and high value-added products, and develop products with independent intellectual property rights: further expand the export of competitive energy-saving products, reduce the export of high energy consuming and high polluting products, and develop high-energy castings and forgings into deep processing, improve the technical content, and pay attention to the continuous improvement and improvement of product technical standards, Strive to move closer and transform to international standards or international advanced technical standards to improve international competitiveness

at the same time, strengthen quality management and optimize product structure, so as to improve the price of export products and export profit margin. After the appreciation of RMB, the import cost of enterprises will be reduced. Export enterprises can take this opportunity to introduce foreign advanced technology and equipment and cutting-edge technology for their own use. Increasing the technical content of the product is an expansion of the overall value of the product. In this way, even if the input environmental parameters and export prices of the product are increased due to the appreciation of the RMB, the market will accept them

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