Source:
https://scmp.com/news/china/economy/article/1866850/china-imports-tumble-20-cent-amid-fears-over-nations-slowing China
China imports tumble 20 per cent amid fears over nation's slowing economy
The drop in imports was bigger than analysts had predicted. Photo: Reuters
China’s exports fell 3.7 per cent in September from a year earlier while imports tumbled 20.4 per cent, their 11th consecutive month of decline and a further sign of weakness in the world's second-largest economy.
The figures left the country with a trade surplus of US$60.34 billion for the month, the General Administration of Customs said on Tuesday.
Analysts had predicted imports would drop 15 per cent, following a 13.8 per cent decline in August.
China’s exports fell 1.1 per cent from a year earlier in yuan-denominated terms, while imports tumbled 17.7 per cent.
Persistent weakness in demand at home and abroad could spell even more pain for trade-reliant Chinese firms in the coming months.
Imports are also a leading indicator for exports, with a large share of materials and parts re-exported as finished goods.
China is widely expected to post its slowest economic growth in a quarter of a century this year as activity is weighed down by weakening demand at home and abroad, factory overcapacity, high debt levels and cooling investment.
The slump in Chinese imports added to worries about a slowdown in the world’s number two economy, sending Asian equities and emerging currencies lower as investors flocked to safe assets.
“The data are not good, but still acceptable to investors,” said Wu Kan, a Shanghai-based fund manager at JK Life Insurance.
“As long as the data remain sluggish, the market will be anticipating growth-boosting measures from the government.”
Tim Schroeders, a portfolio manager at Pengana Capital in Melbourne, warned: “China’s weakening economy slowdown will continue to weigh on the market.
“We’ve had fairly significant lift in equities on speculation the Fed will delay raising rates. That’s now well priced into valuations.”