Chinese exports fall more than expectations on weak overseas demand

Exports from China fell for the month of May, worse than markets had anticipated on slowed demand for Chinese products in the overseas market. Imports, however, improved beyond market anticipation.

Exports fell 4.1 percent last month in dollar terms from the same period a year ago to USD181.1 billion following a 1.8 percent decline in April and leaving a trade surplus of just under $50 billion, the figures showed. Meanwhile, imports fell 0.4 percent in May, a sharp improvement from -10.9 percent in the previous month, data released showed Wednesday.

China’s imports have been shrinking quite at a fast pace since late 2014 as the economy is facing contraction pressures, buoyed by a slowdown in manufacturing capacity, a slowing housing market and increasing debt burden.

The world’s second-largest economy remains a key driver of global growth and a major source of demand for countries like Australia and Nigeria.

Meanwhile, China’s trade surplus came in at USD 49.98 billion in May, missing estimates for USD 55.7 billion. China sets the USD/CNY reference rate at 6.5593, 0.04 percent stronger than 6.5618 yesterday.

However, benchmark Shanghai Composite Index fell 0.40 percent to 2,924.34 and Hang Seng Index was down 0.37 percent to 21,248.19 at 5:25AM GMT.