China: Solid trade data - BBH

Sandeep Kanihama FXStreet Contributor

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).

Key Quotes

“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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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