- Chinese imports fell for the tenth month in a row, tumbling a greater than expected 13.8% in August vs consensus of -8.2% and a fall of 8.1% in July.
- Exports dropped 5.5% vs -8.3% previously and predictions of -6%.
- China's trade surplus rose to $60.2B from $43B and easily topped forecasts of $48.2B.
- The fall in imports reflects lower global commodity prices and sluggish internal demand, while the surprise yuan devaluation last month has yet to have a major impact on exports.
- While for many observers the dollar trade figures will do little to allay worries about China's stumbling economy, research firm Capital Economics isn't so pessimistic.
- "Trade has actually been quite healthy recently in volume terms," Capital Economics points out.
- Indeed, markets don't seem so unhappy either, with the Shanghai Composite climbing 1.75% and the Hang Seng +1.7%.
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