The central bank cut interest rates, and the real estate industry generally rejoiced, believing that housing prices may usher in a rebound. Of course, not all urban housing prices will rebound. So what is the impact on the LED industry? The study found that, including the four major first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, Xiamen and Nanjing, these six cities are most likely to rebound in house prices.
The possibility of both volume and price increases will bring substantial benefits to the industry
On the evening of November 21, the Central Bank announced that the benchmark interest rate for RMB loans and deposits of financial institutions will be lowered on November 22, and the benchmark one-year loan interest rate of financial institutions will be reduced by 0.4 percentage points to 5.6%; the benchmark one-year deposit interest rate will be reduced by 0.25 points The percentage point is 2.75%; the benchmark interest rate for loans with a maturity of more than 5 years is 6.15% (previously 6.55%), and the interest rates of other grades are adjusted accordingly. According to market analysis, the interest rate cut is definitely good for the property market.
The interest rate cut constitutes a substantial benefit to the manufacturing industry, especially for the LED industry facing a decline in exports and a slowdown in domestic demand. This will undoubtedly lead to new industrial development opportunities in the future market. In the capital market, continuous interest rate cuts and deposit reserve ratios are bound to release huge liquidity. Liquidity has completely bid farewell to the austerity situation and ushered in an upward turning point. While reducing the risk-free rate of return, it will also raise the equity risk premium and enhance the attractiveness of the LED-listed corporate stock market relative to other investment product markets. Most manufacturing industries, including LED companies, will be the beneficiaries of this profit structure adjustment. Lowering loan interest rates will reduce their borrowing costs and reduce the erosion of financial expenses on profits, which can boost corporate profitability and have a high debt ratio. For the manufacturing industry, it will solve the great difficulties of the enterprise. This determines that industries whose profits are more sensitive to borrowing costs will be able to enjoy the benefits of this interest rate cut cycle.
Chen Lu, assistant to the director of the research institute of a securities company and chief macroeconomic analyst, said that in the current global economic slowdown environment, both large and medium-sized enterprises hope to reduce costs, especially capital-intensive. The most direct effect of interest rate cuts is to reduce the cost of capital for enterprises.
How big is the impact of the central bank's interest rate cut on the LED industry?
The industry may still face the pressure of slowing growth
It is understood that, driven by the country's further expansion of domestic demand, trillions of investment policies, and a large amount of infrastructure, it is an opportunity and a challenge for engineering LED companies. This round of interest rate cuts has just begun. After several interest rate cuts, the current round of interest rate cuts has just begun. The benchmark deposit interest rate has fallen accumulatively. Analysts pointed out that this shows that the current economy is cooling significantly. As expectations for the future economic situation are still not optimistic, the growth rate of domestic consumption and industrial production may continue to decline. Analysts say that in terms of time and magnitude, the current interest rate cut cycle has not yet passed half, and the stimulus to economic growth is still to be observed. For the entire LED industry, it may still face the pressure of slowing growth.
Speed up independent innovation and promote development
Under the influence of the international financial crisis, some LED companies in my country have encountered difficulties in their production and operation. When the economic situation is good, some companies may lack the foresight and motivation for independent innovation, but at the "extraordinary time", a huge demonstration of independent innovation The effect is immediately apparent. Companies that don't usually pay attention to independent innovation will also be "forced" to take the road of independent innovation, otherwise the road will become narrower and narrower.
At the same time, we will continue to deepen cooperation between industry, university and research institutes, strengthen technical cooperation with scientific research units, strengthen scientific and technological support, and successfully achieve transformation and upgrading. The main body of independent innovation is the enterprise, and the ultimate beneficiary is also the enterprise. The key to increasing investment in scientific research and development is to work hard on irreplaceability.
Seek a cost-effective and cost-effective way to expand
The dilemma faced by small and medium-sized manufacturers at the LED application side under the financial crisis cannot be rescued by a single tool or measure. He also needs the company's own plans and determination to get out of the predicament, and the policy support of government departments. And low-cost, high-efficiency, marketing and promotion for target consumer groups is a more wise choice. Relying on the network, attach importance to the development of e-commerce, reduce the promotion cost of enterprise products, seek high-efficiency and low-cost expansion methods, and blaze a new path during the economic downturn.