First, the news description

The following is the official announcement issued by the central bank:

In order to further support the development of the real economy, optimize the liquidity structure of commercial banks and financial markets, reduce financing costs, and guide financial institutions to continue to increase support for small and micro enterprises, private enterprises and innovative enterprises, the People's Bank of China decided that from 2018 From October 15th, the RMB deposit reserve ratio of large commercial banks, joint-stock commercial banks, city commercial banks, non-county rural commercial banks and foreign banks will be lowered by 1 percentage point. The medium-term loan facilities (MLF) due on the day will not be renewed. .

The People's Bank of China will continue to implement a prudent and neutral monetary policy, not to engage in floods, to reorient and control, to maintain a reasonable and sufficient liquidity, to guide the rational growth of monetary credit and social financing, and to create a high-quality development and supply-side structural reform. A suitable monetary and financial environment.

Second, what is the impact on the textile industry?

1. It is conducive to solving the financial problems of cotton-related and textile enterprises, and credit support will be strengthened.

2. With the focus of the central bank, government funds and the government to turn to thousands of small and micro enterprises, especially to speed up the "debt-to-equity swap", the tight cash flow pressure of cotton-related enterprises is expected to be effectively alleviated.

(1) First of all, to assist the acquisition and processing of seed cotton in 2018/19 to protect farmers' income;

(2) Secondly, cotton traders and textile enterprises are supplemented with funds, which is conducive to the stability of cotton prices and the medium and long-term development of the market. Textile enterprises appropriately increase the storage of cotton and other materials to avoid the risk of huge fluctuations such as Zheng cotton and ICE.

(3) Again, it will benefit cotton sales in 2017/18 and speed up the withdrawal of funds.

3. Stimulate the consumption of domestic cotton, textiles and clothing, and form a positive result for the entire industry.

4. The liquidity is appropriate and lenient. It is good for the people to invest and borrow. At least the cost of borrowing will not rise further, and may even decline in the future. Therefore, in the case of stable financing costs and recovery of market confidence, domestic consumption And investment is expected to go out of the trough, the production and sales of small and micro enterprises such as cotton, textiles and clothing will be fully restored and even entered the "fast lane". Stable production and consumption promotion become a top priority.

5. The government's determination to implement a prudent monetary policy, to give cotton and textile enterprises a "reassuring"

6. China's economic growth in the second half of the year is under pressure. The risks brought about by the decline in financing growth under the background of capital constraints and financial supervision are becoming more and more obvious. It is inevitable to achieve precise control through “reduction of standards” and ease the impact of de-leveraging on small and micro enterprises. Option. From the perspective of monetary policy, the continuous reduction of standards has released liquidity, and the confidence of small and medium-sized enterprises such as cotton, textiles and clothing has been continuously restored.

Third, the market outlook

First, the central bank has released trillions of funds, and the real economy has received tremendous support. In particular, the problem of capital flow for small and medium-sized manufacturing enterprises has been alleviated. Secondly, textile mills have been supplemented with funds to stabilize long-term development and evade, for example, PTA futures. The risk of skyrocketing.

Second, increase the export tax rebate rate twice this year. The increase in the tax rebate rate is concentrated between 1% and 3%, and further simplifies the tax system and speeds up the tax rebate, from the original 13 working days to 10 working days. On the one hand, it increases the profits of enterprises, on the other hand, it relieves the pressure on corporate capital turnover.

Third, the Ministry of Environmental Protection has relaxed the winter pollution prevention measures. For most chemical companies, it is no longer a one-size-fits-all cut, but those that are truly polluting will be inspected.

Fourth, China has reduced the MFN tariff rate of 1,585 tax items from November, including imported textile machinery, so that more companies can import high-quality machinery and equipment to produce high-quality products and reduce the difficulty of upgrading technology. .

Under the influence of so many favorable policies, the textile manufacturing industry is no longer difficult this winter.

Shanghai Jinci Industrial Co., Ltd. was established in March 2006. The company's products include polypropylene PP yarn, PP high-strength yarn, PP anti-UV yarn, polypropylene twisted yarn, PP hollow yarn, polypropylene fluorescent yarn, polypropylene luminous yarn, polypropylene flame retardant. Silk, polypropylene air-changing wire, etc., the products have passed a number of authoritative testing institutions certification, with a number of internationally recognized testing standards, has won wide acclaim from domestic and foreign users.