China: Trade prospects remain firm – UOB


Economist at UOB Group Ho Woei Chen, CFA, assesses the latest trade data in the Chinese economy.

Key Quotes

“China’s export and import growth accelerated in April as external economic outlook continues to improve while commodity prices sustain their upward trajectory. In USDterms, exports surged 32.3% y/y (Bloomberg est: +24.1% y/y; Mar: 30.6% y/y) up from the preceding month and was significantly above consensus expectation, despite the diminishing low base effect and thus is a stronger indicator of a robust external demand. Imports grew at its fastest pace in more than a decade at 43.1% y/y (Bloomberg est: +44.0% y/y; Mar: 38.1% y/y), helped by rebounding commodity prices as well as a low comparison base. China’s trade surplus widened to US$42.85 bn in April from US$13.80 bn in March, its highest in three months.”

“Despite ongoing trade tensions, exports and imports with the US remained robust at 31.2% y/y and 51.7% y/y in April. China’s strong imports of soy beans at 53.8% y/y likely suggests further efforts to increase its purchases from the US. China’s trade surplus with the US rose to US$28.11 bn in April from US$21.37 bn in March. Year-to-date, the trade surplus was at US$100.74 bn, higher compared to US$63.60 in the year-ago period. We expect China’s trade surplus with US to widen this year as the US economy strengthens.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces above 1.21 as the dollar gives ground

EUR/USD has been marching higher as falling US bond yields are dragging the dollar down. Tensions are mounting ahead of the Fed's all-important decision later this week. 

EUR/USD News

GBP/USD hovers above 1.4100 ahead of Johnson's reopening announcement

GBP/USD is trading marginally above 1.41. UK PM Johnson is set to allow a four-week delay to Britain's reopening. Brexit acrimony and dollar strength also weigh on the currency pair.

GBP/USD News

XAU/USD slides below $1,850 level, fresh one-month lows

 Gold continued losing ground through the mid-European session and dropped to fresh one-month lows, below the $1,850 level in the last hour.

Gold News

Elon Musk energizes BTC bullish thesis, with ETH and XRP range-bound

BTC streaks towards imposing resistance between $41,581/$44,622. ETH rebounds from symmetrical triangle's lower trend line. XRP has notably decoupled from BTC, no meaningful direction since the June 8 low.

Read more

US Dollar Index: Awaiting FOMC economic estimates

The Dollar’s initial weaker reaction to Thursday’s May inflation report, (it continued to rise to 5% annually from the 4.2% seen in April and the CORE reading at 3.8% was close to a 30-year high), which sent the USDIndex to test the week’s low zone at 89.90, was short – lived

Read more

Forex MAJORS

Cryptocurrencies

Signatures