China’s Exports and Imports Beat Forecasts. Trade Surplus at $58.34B in August

Source: National Bureau of Statistics

China’s exports rose by 25.6% year over year in August, a better-than-expected gain of 17.1% to fuel the economy to a trade surplus of $58.34 billion. The surplus was higher than the expected $51.05 billion. CSI 300 is up +1.20%, USDCNY is up +0.09%.

• The annual gain in exports was higher than July’s surge of 19.3%, while the trade surplus was higher than $56.58 billion posted in July.
• The trade surplus with the US increased to $37.68 billion, up from $35.4 billion in July despite the trade tensions. 
• Imports rose by 33.1% year over year, more than expected 26.8%, and higher than July’s 28.1% gain contributed by rising commodity prices.
• Supply chain constraints eased, although near-term headwinds persisted in a rebounding global demand for Chinese goods. 
• Despite the surge in trade, analysts expect more stimulus from Beijing, with the cash that banks hold as reserves projected to be reduced to support further growth.