After the National Day holiday, the domestic textile plate ushered in "riots". Among them, the Shenwan textile and clothing index rose by 11.44% (as of October 20), while the Bull Stock Jujie microfiber rose by 97.77% within 10 days.
On the evening of October 19, Jujie microfiber issued the announcement on abnormal fluctuation of stock trading, which said, "in view of the fact that some orders from India's textile industry returned to China due to the epidemic situation reported by some social media recently, the company has not found any increase in the order volume due to this matter through multi-party verification of the company."
Jujie micro fiber on October 20 midday disclosure of the three quarterly forecast also poured a ladle of cold water on fanatical investors. Jujie microfiber predicts that in the first three quarters of 2020, the company will make a profit of 13-16 million yuan, down 71% - 64% year-on-year; in the third quarter, it will make a profit of 4.36-7.36 million yuan, down 73% - 54% year-on-year.
On October 20, Jujie microfiber changed from Lianyang to Lianyang, falling 1.92%, and driving the whole textile sector to weaken. On the same day, Shenwan textile and clothing index only slightly rose 0.24%.
The 21st century economic report reporter learned that although some Indian textile orders flow back to China, in the view of industry insiders, this trend may not last long.
"This kind of return will not be sustainable. After all, the cost advantage lies there, and the domestic labor cost is getting higher and higher. If the overseas epidemic situation gradually stabilizes and India and Southeast Asia resume production capacity, the orders will still go back; on the other hand, if the overseas epidemic situation breaks out again and again, the demand side will also be affected. " On October 20, textile industry analysts of a medium-sized securities firm in South China pointed out in an interview.
