4180
China Exports Bolster Economy
World Economy

China Exports Bolster Economy

China’s exports rose more than estimated in October, signaling foreign demand may help sustain an economy forecast to grow at the slowest pace since 1990.

Overseas shipments increased 11.6 percent from a year earlier, exceeding the 10.6 percent median estimate in a Bloomberg News survey of analysts. Imports rose 4.6 percent, compared with projections of 5 percent, leaving a trade surplus of $45.4 billion, the customs administration said Saturday.
Recoveries in the US and Europe are underpinning growth, with the two regions accounting for almost a third of shipments. Exports to Hong Kong, which then go to other destinations, surged 24 percent in October. Disparities in bilateral trade data published by China and Hong Kong have raised concerns of fake invoicing, which is used to evade controls on the flow of capital into the mainland.
“The US recovery is pretty strong so China exports are holding up,” said Hu Yifan, chief economist at Haitong International Securities Group Ltd. in Hong Kong. “There might still be some fluff in the trade numbers due to fake invoicing, but there won’t be severe fake trade like that of last year.”
The exports reading follows a 15.3 percent jump in September. October’s trade surplus was forecast at $42 billion, following a $30.96 billion figure for September.

 Bumpy Recovery
Exports in October to members of the Association of Southeast Asian Nations grew 18 percent from a year earlier, Saturday’s data showed. Shipments to Japan declined 8.1 percent.
“The global economy is going through a bumpy and torturous recovery,” Chinese Central Bank Governor  Zhou Xiaochuan said at a conference in Beijing Saturday. “The momentum of growth is still far from being adequate and we still have a long way to go to achieve sustainable and balanced growth.”
China’s economy will probably grow 7.4 percent this year, the slowest full-year expansion since 1990, according to a Bloomberg survey. Expansion in the third quarter was 7.3 percent, with growth for the first nine months at 7.4 percent.
In September, the gap between China’s reported exports to Hong Kong and the territory’s imports from the mainland widened to the most this year, suggesting fake export-invoicing is again skewing China’s trade data. Hong Kong is a major channel for those seeking to exploit yuan appreciation or higher interest rates in China by disguising money inflows as payment for goods exported to foreign countries or territories.

 Precious Metals
China’s government sent a team to Guangdong province to investigate a seven-fold increase in September precious-metals exports, which have been at the center of questionable invoicing in the past, people familiar with the matter said last month. In October, precious-metals exports slumped to $4.9 billion from September’s $10.8 billion. That was still almost three times the amount of shipments in October 2013.
“Overseas sales are resilient – though not as strong as the headline data suggest,” Bloomberg North Asia economist Tom Orlik wrote in a note, citing the effect of invoice exaggeration on October exports. Today’s data “will do little to shift the government’s commitment to moderate targeted easing, as opposed to overblown stimulus.”

 

Short URL : http://goo.gl/LnLn4F

You can also read ...

Both, Russia and China, have intensified efforts in recent years to settle bilateral trade not in US dollars, but in rubles and yuan. Gold is considered important by both countries.
The issue of when a global reserve currency begins or ends is...
Norway’s Sovereign Wealth Fund  Hits $1 Trillion
The Norwegian sovereign wealth fund, the largest in the world...
Janet Yellen
As the Fed starts unwinding the stimulus it provided to snap...
Multinational digital firms, mostly based in the US, have pushed for globally harmonized rules that would provide predictability and limit the space for national governments to intervene in digital flows.
The increasing digitization of the global economy is changing...
Ukraine Raises $3b in First Bond issue
Ukraine has raised $3 billion in its first sovereign bond...
Kazakh Economy Grows by 4.3%
The economic growth in Kazakhstan was at 4.3% since the...
Hungary CB Rate on Hold
The Monetary Council of the National Bank of Hungary, or MNB,...
The IMF could write off its debt and lighten Greece’s burden.
“Beware of Greeks bearing gifts,” wrote the ancient Roman poet...

Trending

Googleplus