No cheer in China’s trade data

China's exports dropped for fifth consecutive month and import continued to slump for 13^th consecutive month in November, highlighting fear of further slowdown in world's second largest economy. Commodity exporters to China are worried that even if slowdown settles, China's transformation export powerhouse to domestic consumption focus could continue to slump commodities demand.

According to customs, exports have slumped by 3.7% in November after dropping 3.6% in October. Imports have declined by 5.6%.

Due to larger fall, China was able to manage high trade surplus of $54.1 billion or Yuan 343.1 billion, though median expectation was for numbers around $63 billion.

While import slowdown is a headache for China's trade partners such as Australia, New Zealand etc., People's bank of China (PBoC)likely to do more, even after six rate cuts in last one year.

After US Federal Reserve hike rates in December, slowdown and high corporate debt levels in China could be one of the central theme next year.