Analysts at BBH suggests that the takeaway from the economic reports from China is that it reported a larger than expected trade surplus ($54.7 bln vs. Bloomberg median survey forecast of $37 bln and the November's $39 bln that was initially $40.2 bln).
“The cause of the surprise was weaker imports. Exports rose 10.9% year-over-year after a revised 11.5% gain in November. Imports rose 4.5%. The Bloomberg survey looked for 15.1% and in November they had risen by 17.6%.”
“Separately, China reported aggregate financing slowed, ostensibly as the government encourages de-leveraging. Aggregate financing slowed to CNY1.14 trillion from CNY1.6 trillion. The market had looked for a much smaller decline. It was new yuan loans that accounted for the miss, which means that the shadow banking may not be slowing as much as bank lending.”
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