Dongguan Huayuan Electronic Technology Co., Ltd , https://www.zjsiliconefactory-oem.com
China is one of the emerging market countries that has a high debt ratio and a faster leverage. Goldman Sachs stated that the risk of debt imbalance is greatest in China. If interest rate hikes result in capital outflows, which in turn cause liquidity shortages, then it will have a serious impact on institutions with high debt ratios. The domestic titanium dioxide company's debt ratio is higher than most other industries in the country, so as long as the company has a problem, all problems will be immediately exposed.
Under the normal economic growth slowdown, structural oscillations caused by excess industrial capacity in the industry, stringent restrictions on environmental protection, and the downward trend in the actual market structure, the transformation of resource allocation has led to a decline in our overall labor productivity, which has led to our economic growth rate. In the past few decades, we have basically been learning innovation. But today, there is nothing to learn, or people do not let you learn. So we stand at the forefront of history, we need independent innovation, and we suddenly discovered that our ability to independently innovate is very poor. The low-cost dividends of human resources in China's titanium dioxide industry and the low-risk dividends for financing expansion are gone forever, and crude production models and management are no longer adapted.
The titanium dioxide industry is not really a bulk product industry. However, the indispensable characteristic of titanium dioxide in many industries is a product with a certain status in the national economy. The application of titanium dioxide is very broad. The per capita consumption of titanium dioxide in China is only quite comparable. One-quarter to one-third of developed countries are far behind developed countries. The titanium dioxide industry in China has experienced rapid growth from the past few decades. In particular, high-speed energy expansion in recent years has resulted in a serious excess of low-end production capacity and a high debt ratio. The Fed raised interest rates this time. In the global economic downturn environment, the titanium dioxide industry may add to the snow.
"Crisis" will always be accompanied by "opportunity". Xida clearly stated that it is necessary to promote the effective elimination of excess production capacity and promote the optimization and reorganization of the industry; to reduce costs and help enterprises maintain competitive advantages; to dissolve real estate inventory and promote the sustainable development of the real estate industry; To prevent and resolve financial risks, accelerate the formation of a stock market with complete financing functions, a solid foundation system, effective market supervision, and full protection of investor rights and interests.
The production of titanium dioxide in China is dominated by the sulfuric acid process, which has been going on for decades. However, the quality of our sulfuric acid titanium dioxide products is generally not comparable to that of international brands and the homogeneity is serious. The key technologies for the production of titanium dioxide from the chlorination process have been blocked internationally and we have not yet been able to break through. The national policy of “restricting the sulfuric acid method†and “encouraging the chlorination method†is to guide the industry to take the clean production and Xunhua economy in the production of sulfuric acid. Accelerate the improvement of product quality, companies work hard in the product, make unique products rather than blindly fight the price war, but must be "innovation" in the product structure; production of chlorinated titanium dioxide must overcome technical difficulties, international The blockade forced the industry to "innovate," and innovation was the hard truth. "Innovation" is the only way China's titanium dioxide industry must undergo during the 13th five-year period under the new normal.
The Fed's interest rate hike titanium dioxide industry is "somewhat worse"
Goldman Sachs pointed out that with the Fed raising interest rates, the credit leverage of emerging markets will become particularly vulnerable, among which China, South Korea, Turkey, Mexico and other countries with high debt ratios are particularly worrying.