It will take time for the textile industry to see fundamental improvement and policy adjustment effect

Liu Ying, chief investment advisor of Huatai Securities, made a guest program and analyzed the results of this year’s mid-year report “Mine Landmines”.

Liu Ying: Light industry manufacturing was once the main force of our economic growth and export-oriented economy. However, the overall industry is currently sluggish, especially in the textile and chemical fiber industry. The performance of the mid-term report is not satisfactory.

Due to the sluggish external demand and the decline in orders, the export of textile manufacturers continued to shrink. It is expected that it will take time for the fundamentals of the textile industry to improve and the effect of policy adjustments to become apparent. In terms of inventory, the index of finished goods inventories in the textile industry, chemical fiber weaving, and rubber and plastics products all went up, reflecting the backlog of inventory caused by poor terminal demand.

The performances of Jiangsu Sunshine, Zhaoxing, Huafeng Spandex, Tongkun, Xinxiang Chemical Fiber, and Nanjing Chemical Fiber, which have already forecast the results of the interim report, have generally declined sharply. The overall industry is not optimistic in the short term.