CCTV.com - CNTV English - CCTV News

Yiwu export businesses face RMB volatility

09-21-2010 09:33 BJT

Watch Video

Play Video

The yuan's appreciation spells bad news for export-oriented companies, like those in East China's Zhejiang Province. Now banks in Yiwu have stepped in, to help those businesses adapt.

The Industrial and Commercial Bank of China's Yiwu branch sent a team to local garment producer, Berkam. They're getting knowledge of the company's current operations and offering advice.

Cheng Wei, Staff of Yiwu Branch, ICBC said "The yuan's exchange rate has hit a new high. This troubles export businesses with great risks. Some of our services, such as trade financing, and invoice financing, can help them avoid risks. Those services enable early exchange settlement."

Berkam is one of the largest businesses in Yiwu. Around 90 percent of its products are exported to overseas markets. The company's deputy sales manager says the volatile exchange rate has a big impact on a low-profitable clothing industry. But Berkam has been long aware of the risks and is working with banks.

Guo Honghai, Deputy Manager of Zhejiang Berkam Garments Co. said "We export most of our products. We are taking the invoice financing which enables early exchange settlement. For example, this British order includes 140 thousand items of clothing. With adopted measures, 100 thousand yuan can be saved."

Berkam's sales in 2010 have so far amounted to 300 million yuan, in which profits account for between 24 and 25 million.

If not for the early exchange settlement, a fifth of the company's profits might be cut. The manager says the early settlement helps his company receive payment in advance and avoid risks brought about by the changing exchange rate.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program