Abstract: The textile industry is the pillar industry in Hebei Province traditional economy, but this year, the appreciation of the renminbi, to reduce the export tax rebate rate, the bank interest rate increase, cotton and labor prices, and so on successive adverse factors, Hebei Province, the textile industry has encountered unprecedented difficulties. The first three quarters this year, Hebei production of the textile industry and the major economic indicators the significant slowdown in growth. The production of traditional varieties based enterprises generally increased inventory, production and sales, lower profits space narrowing, and some enterprises to reduce the original rate of the equipment, a cut-off, semi-cut-off state, yarn, cloth and other major product release rate of output growth ease. Industry operating very difficult, risks intensify.
    
     A rapid increase in business costs difficult 

The first three quarters of this year, Hebei Province, in addition to printing and dyeing cloth, knitting wool and wool woven fabric, other products output growth rate were lower than the national average. The main raw material cotton textile industry, due to the rapid expansion of domestic and imported cotton shortfall quota system and sliding-tax system common to push market prices rose faster in some places and even the city has no price, to惜售phenomenon Cotton . In cotton yarn, fabrics and other textile production costs in the initial share of 70 percent and above, will inevitably bring about higher prices in the cost of textile enterprises increased, while coal, electricity, water, steam prices and wages are rising, such as Hebei Handan sea Sung Won Group this year tariff increase 9.43 percent, the steam price increased by 80%, wages increased 9 percent. The rapid rise in production costs, many small firms have started overburdened, and some enterprises to reduce the original rate of the equipment, a cut-off, semi-cut-off state, yarn, cloth and other main products output growth has noticeably slowed down.
    
     Many factors affect the profitability of industry decline 

Textile export tax rebate rate decreased and continued appreciation of the renminbi so that the textile industry's exports of Hebei Province enterprise profitability has been on the decline and increasing difficulty in recruiting workers, enterprises, the increased mobility of staff, seriously affected the enterprise's productivity, stability and quality improvement in market competition fierce and changes in supply and demand reasons, such as to enable the production of traditional low value-added products based enterprises feel difficult, business inventories generally increased level of profit decline, some equipment is outdated, poor quality of products has been cut-off enterprises. If Handan sea Sung Won Group, as 56-inch shuttle loom pure compensable labor costs, had to be closed down or had more than 500 units, mainly yarn and cloth products output dropped 5-6%, revenue dropped by about 4 percent. Textile Dyeing and Printing Group-orders this year, year-on-year decrease of 8%, dyeing and printing equipment operating rate only 70%, and processing fees than last year, prices fell by 50 percent. 
This year, 1-9 in Hebei Province textile enterprises marketing rate and profitability level in varying degrees decline in production and sales, lower inventory increase, profit margins narrow.
    
     Investors continue to increase industry reshuffle intensified 

Although Hebei textile industry is facingthe difficult situation, but the current investment in fixed assets in Hebei textile industry still has strong growth momentum. This year alone from January to September, Hebei Province, the textile industry actually completed investment in fixed assets 9.98 billion yuan, an increase of 44 percent. The newly started projects 399, an increase of 30 percent. Because of the pincer attack from both inside and outside, Hebei textile industry has been very difficult, in some businesses or individuals with blind investment, which will lead to increased Hebei textile industry reshuffle, the low level of large-scale investments yarn, cloth enterprise market risk is growing.
    
     In the billion Analysis: 

 A rapid increase in costs, the appreciation of the renminbi and bank interest rate increase is still tremendous pressure, lowered the export tax rebate rate the possibility still exists, Hebei textile industry operating conditions continued to deteriorate, a large number of SMEs has been overburdened, some enterprises to reduce the original rate of the equipment, in a stop production, semi-cut-off state, industry profits sharply reduced, the industry reshuffle is unavoidable. At the same time, as some businesses and individuals blind investment, Hebei textile industry rapid growth in investment in fixed assets, resulting in the industry reshuffle intensified. This, analysts suggested billion in the bank as follows: 
     

Textile is a major province of Hebei, but the majority of middle and low-based products, were not suited to the development of the future market demand. Bank Credit, for the low-end redundant construction projects, should strictly enforce the state's industrial policy and banking credit policy, no credit. The credit has a new, should re-assess the value of investment projects, intensified tracking and monitoring, focusing on monitoring corporate profits and cash flow changes in timely detection, suggesting that, control and resolve potential risks, and may require increased its loan guarantees, in order to prevent the occurrence of credit risk. 
     
At the same time, banks should guide enterprises through the primer advanced equipment and carry out technological transformation, and improve enterprise productivity and value-added products. If the second Cotton Mill in Handan, Hebei, since the introduction of energy-saving control system spinning frame, lowering the yarn end breakage rate, reduce the number of sudden yarn faults, raising product quality, reduce Spinning decapitated for the expanded value lathe worker stands to reduce 10,000 employment, production cost savings made it possible. Handan current gross annual sales of cotton and economic benefits of a substantial increase. Such technological transformation of enterprises or in the introduction of advanced equipment, bank credit should be given active in helping these enterprises to gain market for high-end products at the same time, get a stable income.