The central bank to cut interest rates on the LED industry impact geometry?

Bring substantial positive for the industry

The central bank announced on the afternoon of 26, from November 27th onwards, down 1 year loan interest rate 108 basis points; at the same time, large banks lowered deposit reserve ratio by 1 percentage points, down in the small bank deposit reserve ratio by 2 percentage points. This is the central bank cut interest rates fourth times in the year, the decline is far more than the market expectations of the previous 54 basis points, a strong history of strong policy efforts. J cut interest rates constitute a substantial positive for the manufacturing sector, especially for the slowdown in exports and domestic demand slowdown in the LED industry, the move is undoubtedly in the future market or the emergence of new opportunities for industrial development. In the capital market, the rate cut and the deposit reserve ratio is bound to release a huge liquidity, liquidity has completely bid farewell to the tightening situation, ushered in the inflection point. At the same time to reduce the risk-free rate of return, but also will raise equity risk premium, enhance the attractiveness of LED listed companies in the stock market relative to other investment goods market. Most of the manufacturing enterprises, including LED will benefit the adjustment of profit pattern, lower lending rates will reduce their borrowing costs, reduce erosion of the financial costs of profits, to boost the level of corporate profits, for manufacturing high debt ratio of enterprises, will solve the difficulties. This determines that the more sensitive to the cost of borrowing costs for the industry to enjoy the benefits of this rate cut cycle.

Haitong Securities Research Institute, Limited by Share Ltd, macroeconomic assistant chief analyst Chen Lu said that in the current global economic slowdown environment, whether large or small and medium enterprises, hope to be able to reduce costs, especially capital intensive manufacturing enterprises, and cut the most direct effect is to reduce the cost of capital.

Industry may still face slowing growth pressure

In the country to further expand domestic demand, trillion investment policy driven, massive infrastructure driven, for engineering LED enterprises is an opportunity and challenge, and the rate cut cycle has just begun, after four cuts, the benchmark deposit rate has dropped by 1.62 percentage points, the benchmark lending rate has dropped by 1.89 percentage points. National Bureau of statistics data released in November 26th showed that China's major economic climate index in October showed a downward trend. Analysts pointed out that this shows a significant cooling economy. Because of the economic situation is still not optimistic about the future expectations, domestic consumption and industrial production growth will likely continue to decline, analysts say, in terms of time, or from the amplitude, the rate cut cycle is not more than half, to stimulate economic growth remains to be seen. For the entire LED industry may still face slowing growth pressures.

Accelerate the development of independent innovation

In the international financial crisis, part of China's LED enterprises production and management difficulties, the economic situation is good, some enterprises may lack independent innovation vision and power, and to "very", immediately huge demonstration effect of independent innovation appeared flat when do not attach importance to the independent innovation enterprises will be forced on the road of independent innovation, otherwise the road will become narrower and narrower.

At the beginning of November this year, the State Council executive meeting identified 10 measures to further expand domestic demand and promote economic growth, clearly stressed the need to speed up the independent innovation and structural adjustment, to support the construction of high technology industrialization and industrial technology progress. Recently, Premier Wen Jiabao stressed in Zhejiang Shanghai investigation work, many enterprises in the face of difficulties, hard skills, so I have no people, I have excellent people; to focus on changing the mode of development, accelerate innovation, the formation of independent intellectual property products and brands.

At the same time continue to deepen cooperation, strengthen cooperation with scientific research units to strengthen scientific and technological support, the smooth realization of the transformation and upgrading. The main body of independent innovation is the enterprise, and the ultimate beneficiary is the enterprise. Increase investment in scientific research and development, the key is to work on the irreplaceable.

Seeking efficient and low-cost expansion mode

Under the financial crisis, the small and medium-sized manufacturing enterprises in the LED application faces the dilemma is not only a single tool or measures can be saved. He also needs the enterprise itself to get rid of the plight of the plan and determination, the need for government policy support. The low efficiency, marketing for the target consumer groups is a wise choice. Relying on the network, pay attention to the development of e-commerce, reduce the cost of product promotion, to seek cost-effective expansion of low-cost way out of the economic downturn in a new way.

Source: China Semiconductor Lighting Network