The demand cool down and increased supply after December have not been conducive to the following panel price trend

On November 30th, the People’s Bank of China has announced for the first time in 3 years that Reserve Requirement Ratio will be cut by 0.5% starting from December 5th, 2011, followed by the joint announcement by global top six central banks of Fed/BOC/BOE/BOJ/ECB/SNB of the coordinated 50 bp cut to dollar swap rates starting from December 5th in order to increase the liquidity of global financial system. However, the Europe debit crisis has been lasted for almost two years, while the debt issues in US have also led to economic regression and consumption stagnation. The momentum of growth in the domestic market in China, once playing the savior role, has been slowed down due to housing bubble and financial difficulties among SMEs. The intensified global economy has weakened the private consumption. Even though the number of retail sales during Thanksgiving has been exceeding the expectation, products most favored by consumers are those cost-effective ones, which is not exactly good news for components suppliers. With over-supply environment not going to be improved anytime soon, they must rely on continuous cost optimization and technology innovation in order to produce products meeting the expectations of most consumers.


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