how much affect the central bank cut interest rates to China's LED industry

The central bank cut interest rates, the real estate sector in general rejoiced that prices will likely usher in a rebound. Of course, not all cities housing prices will rebound. Then the impact on the led street lighting Manufacturer ? The study found, including four first-tier cities north to Guangzhou-Shenzhen and Xiamen, Nanjing, the possibility of the six largest cities housing prices rebound.
The possibility of a significant volume and price Qi Zhang industry to bring substantial positive
Evening of November 21, the central bank announced: from November 22 cut financial institutions RMB benchmark lending and deposit interest rates, one-year benchmark lending rate down 0.4 percentage points to 5.6%; year benchmark deposit rate cut 0.25 percentage point to 2.75%; 5-year benchmark lending rate above 6.15% (previously 6.55%), other various grades of interest rates adjusted accordingly. According to market analysts, the interest rates for the property market is definitely a big plus.
Constitute a substantial positive interest rate cuts in manufacturing, especially for facing the decline in exports and domestic demand slowdown LED industry, this is undoubtedly the market in the future, or the emergence of new industrial development opportunities. In the capital markets, cut interest rates and deposit reserve ratio must release enormous liquidity, liquidity crunch has bid farewell and usher upward inflection point. In reducing the risk-free rate of return, but also to raise the equity risk premium, enhanced LED listed companies stock market relative attractiveness of other investment products market. Most manufacturing companies, including including the LED will be the profit structure adjustment of the beneficiary, the lower lending rates will ease its borrowing costs, reduced financial costs of profit erosion, can boost the level of corporate profits for the debt ratio the manufacturing industry, companies will be very difficult to solve. This decision, the more sensitive to the cost of borrowing significantly more able to enjoy the benefits of industry profits this easing cycle brings.
Assistant director of a research institute Securities Co., chief macroeconomic analyst Chen Lu said that in the current global economic slowdown, the environment, whether it is large or small and medium enterprises, are hoping to reduce costs, especially capital-intensive manufacturing enterprises, and cuts the most direct effect is to reduce the corporate cost of capital.

Industry may still face a slowdown pressure
It is understood that, in the country to further expand domestic demand, driven by trillions of investment policy, driven by a large number of infrastructure for the project type LED business opportunities and challenges, and the current round of rate cut cycle has just begun, after several cuts, the current benchmark deposit rate cumulative decline. Analysts pointed out that this remarkable display of the current economic cooling. Because of the expected future economic situation is still not optimistic, domestic consumption and industrial production growth is likely to continue to decline, analysts say, in terms of time, or from the magnitude of view, the current round of rate cut cycle are not yet more than half also stimulate economic growth remains to be seen. The entire LED industry may still face slower growth pressures.
Accelerate innovation and development
Under the influence of the international financial crisis, China's LED production and operations portion of the difficulties encountered in the economic situation is good, and some companies may lack the vision and power of independent innovation, and to the "very tense" tremendous innovation demonstration effect immediately apparent, usually do not pay attention to business innovation will be "forced" on the road of independent innovation, otherwise the road gets narrower.
While continuing to deepen research cooperation, strengthen scientific and technological support to strengthen technical cooperation and scientific research units, the smooth realization of the transformation and upgrading. The main innovation is the enterprise, the ultimate beneficiary is the enterprise. Increase research and development investment, the key is to work hard at not irreplaceable.
Seek cost-effective way to expand
The plight of the financial crisis at the end of the small and medium manufacturing led street light wholesale are facing not just rely on a single tool or measure can be saved. He also requires companies to bail out plan itself and determination needed to support government policy. The cheap and efficient, targeted consumer group marketing is more sensible choice. Relying on a network, attaches importance to e-commerce, enterprise product promotion expenses reduce seek cost-effective way to expand in the economic downturn and embark on a new path.