China’s exports expanded at 14% in October from a year earlier, above expected 9.3%, and September’s 9.9% rise, the fastest growth in 19 months, according to Reuters. Imports grew 4.7% year over year in October but below the expected 9.5% increase and slower than September’s 13.2% expansion. Strong demand for medical supplies and reduced manufacturing capacity elsewhere fueled China’s exports.
- Analysts expect China’s exports to remain strong in the rest of 2020 on the faster resumption of domestic production than the global rivals, but some expect slowdowns on return to lockdowns in Europe.
- A solid trade performance could boost China’s broader economic recovery, which incurred a slump earlier this year due to pandemic.
- The surge in China’s exports pushed the trade surplus in October to $58.44 billion, up from the expected $46 billion surplus and September’s $37 billion surplus.
- China’s trade surplus with the U.S. rose to $31.37 billion in October, up from $30.75 billion in September.
- China’s economy grew 4.9% in Q3 from a year earlier, but growth could slow to just over 2% this year, the weakest in over three decades, but much stronger than other major economies.
Chinese stocks are gaining. 399106: SHE is up 1.86%, HSI is up 1.18%, CSI300 is up 1.96%