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Positive factors

The face of internal and external situation, the government expected to adopt a portfolio of control

In fiscal policy, the policy tone may turn positive from stable, in which the transformation of value-added tax, and the issuance of long-term government bonds may be issued one after another; in monetary policy, the policy tone may shift from a tight sound and flexible, and constantly cut interest rate and reserve ratio, gradually dilute the credit scale control; in tax policy, is likely to export tax rebates, VAT and personal income tax threshold and so the appropriate adjustments; in industry policy, stability, foreign trade and real estate industries policy of gradually introduced just around the corner.

In 2009, China's macro-control focus in ensuring economic growth, employment, and to maintain social stability and economic operation, and such adjustment
Home Appliances
Constitutes a strong industry support.

Raw materials prices lower the cost of home appliance manufacturing

In the past two years, the home appliance industry is subject to the "two-price rate of the two," the situation is more prominent. The so-called rate is higher interest rates and the continued appreciation of the RMB exchange rate. The so-called price is the price of raw materials and labor prices.

Should be noted: First, the current interest rate has accelerated down the exchange rate appreciation has also been slow rhythm; second, the current price of raw materials, including iron and steel, nonferrous metals, energy, Deng Jun has dramatically decreased, the rising trend of labor costs also significantly ease the . This appliance businesses, the effect is twofold, the steel components of energy and raw material prices and import prices down, meaning the decline in domestic and international demand, which is detrimental to household appliances, but also enhanced the household electrical appliance enterprises in turn reduce cost, and enhance the capacity of the export offer. On balance, on the household electrical appliance enterprises may still be more favorable factors, household electrical appliance enterprises could further increase the degree of concentration.

Increase rural incomes will increase demand for rural household appliances

Present, rural land reform, basic health care system in rural areas continues to expand coverage, have made the momentum of urban and rural gap might ease. Although the income level of rural residents by the impact of overall economic growth fall, but more by the impact of agricultural prices, their income levels increased quickly. In the first quarter, the per capita cash income of rural households rose 18.5%; in the first quarter to the second quarter of the per capita cash income of rural households rose 19.8%, after deducting price factors, the actual growth of 10.3%; in the first quarter to the third quarter, the rural 3971 yuan per capita cash income, an increase of 19.6%, after deducting price factors, the actual growth of 11.0%. Rural income growth higher than GDP (GDP) growth. The rapid growth of rural household income is likely to be a bright spot in home appliance sales, and "home appliances to the countryside" policy will also promote the increased demand for rural household appliances.

Exports declined by the government raised the export tax rebate rate

First 9 months of this year, China's export growth last year from 25.7% to 22.2%, exports amounted to 1.07406 trillion U.S. dollars, up 22.2% over the same period, significantly lower than from January to September of 2007 27.1%. Affected, with most of the export industries, home appliance sector export growth has declined.

According to Customs statistics, from January to September 2008, including
Air conditioning
,
Refrigerator
,
Washing machine
10 species, including major household electrical appliances exports to 2,442,120,000 units, down 6.0%, the amount of 34.39 billion U.S. dollars exports, up 18%. Among them, the air conditioner machine export volume fell 0.5%;
Fan
Export volume fell 6.6%;
Microwave ovens
Export volume fell 1.9%, laser disc players exports fell 30.9
Refrigerator
Export volume grew 1.4%, washing machine exports up 15.7%
TV
Machine exports up 10.7%. From the above data, the household electrical appliances exports fell and export value rose, household appliances export unit price increase, export competitiveness has been seriously affected.

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