China off to shaky start in 2016 as exports and imports take a dive
Exports fall 11.2pc in January from a year earlier, while imports drop 18.8pc, customs data shows
Mainland trade is off to a slower start in 2016, with both exports and imports registering steeper-than-expected falls in January – indicating weak demand both at home and abroad.
Exports fell 11.2 per cent in January from a year earlier in US dollar terms – steeper than the 1.4 per cent drop recorded in December, the General Administration of Customs said on Monday.
Imports dropped by 18.8 per cent in dollar terms – accelerating from a decline of 7.6 per cent in December.
However, the mainland’s imports from Hong Kong reported a surge of 108.1 per cent in January, raising suspicion among analysts about over-invoicing activities to disguise possible capital outflow, especially amid hefty expectations of the yuan’s depreciation.
READ MORE: China’s export figures stronger than expected in December amid fears over nation’s slowing economy
“The trade data with Hong Kong is often distorted, but single-month data – especially around the Lunar New Year – is not robust enough and we’d better wait for February’s data as well as Hong Kong’s calibration of its purchase from – and shipment to – the mainland for a better judgment,” said Frank Tang, an economist with North Square Blue Oak, a London-based investment bank.
But the trade surplus climbed to a record high of US$63.3 billion in January, with the worse-than-expected drop in exports offset by the more disappointing imports figure.