Trade balance figures were lower than expected for China’s import/export market.
Since China’s growth started in earnest in 2005, the annual trends of trade balance have followed almost the same peaks and troughs, though this year the differentials are starting to become more obvious with lows of $22bn in March rising to a high of $49.8bn in September.
However, the figures announced today give a buoyant picture of support for both domestic and international growth as exports rise more than expected, and imports soar. The figure reported is $31bn as opposed to the forecast of $41.2bn making the difference lower to September’s top rate. Overall, the trend is still sustaining its normal annual flow of growth in China.
If China’s customs office is to be believed, and the chart trend continues, China will recover its growth on exports by the end of the year. As in the American and European economies, these lows are normally explained by renewal of inventories. In China, this month’s reduced difference between import and export figures may be explained partly by its imports of iron ore, rising 13.1% from August.
The real victims of the trade balance are the Asian stock markets with seven-month lows as exports for goods did not reach their expected level, with Hang Seng down -147.72 (-0.64%) at 22,941 and ASX 200 down -40.45 (-0.78%) at 5,148.
China is still growing by 6 percent.