A Study On The Exchange Rate Risk Management In Shipbuilding Industry

In recent years, growth in the international market, and graduallyincrease, high degree of internationalization of export-orientedindustries, China’s shipbuilding output is currently more than70percentof export ship. Due to the current price of commercial shipbuilding andship-based mostly in US dollars, so whether it is in the past or thepresent or the future, the impact of exchange rate fluctuations ondomestic and foreign shipbuilding business and development can not beignored. With the acceleration of the process of internationalshipbuilding and China’s foreign exchange management system reform, theimpact of exchange rate changes on China’s shipbuilding industryincreasingly greater exchange rate risk management has become China’sshipbuilding industry must face and resolve an important issue.Shipbuilding is one of the early industrial sector to participatein international competition, with high export rates and equipment importrate. As China’s shipbuilding enterprises deepening involvement in theinternational shipbuilding market. However, since the second half of2008after the global financial crisis, China’s shipbuilding industryexperienced a downturn situation of international shipping and the newboat market. Since2005China has adopted a floating RMB exchange ratesystem, the continued appreciation of the RMB against the Chineseshipbuilding industry has had a major impact on the speed of appreciationand did not have any tendency to stagnation. According to experts predict: RMB appreciation will make shipbuilding enterprise orders difficultiescompetitiveness of the industry decline, orders in hand into a "hotpotato" to reach our goals in the world’s largest shipbuilding countryis difficult to achieve, with Japan, South Korea The gap will widenfurther. After preliminary calculations, the dollar10%, you can makethe actual ship’s lower settlement price of$6-7per cent, due to theshipbuilding industry itself acts as a small profit margins, so if theRMB against the projections, if not effectively guard against foreignexchange risk aversion, shipbuilding areas of business operating resultsbecause the yuan appreciation will disappear. Therefore, the study ofChina’s exchange rate risk management, the shipbuilding industry has animportant theoretical value and practical significance.