After a rollercoaster year for Chinese trade, November proved to be a positive month for both imports and exports as each respective figure climbed back into positive territory. Exports managed to show a 0.10% gain on an annualized basis, beating expectations of a -5.00% contraction as a cheaper Yuan helped trade recover in Yuan-denominated terms. Imports rose by 6.70% over the same period, outperforming estimates of a -1.30% decline. The trade balance slipped from $49.06 billion to $44.61 billion during the month of November, driven primarily by the growth in imports exceeding the comparable export figure. The weaker Yuan is helping trade to recover, however, in dollar terms, trade remains sizably smaller than a year earlier. Now the attention will shift to inflation and the pace of capital outflows as the offshore Yuan resumes weakening against the US dollar.
Surplus Falters As Chinese Trade Rebounds
Daily Analysis - 08/12/2016