China’s surplus shrinks in October as exports fall further, imports surges unexpectedly

Exports from China dropped by 6.4% y/y to $274.83 billion in October 2023, faster than a 6.2% fall in the previous month and worse than market forecasts of a 3.3% decline. This marked the sixth consecutive month of declining exports, reflecting persistent weak demand from abroad.

Imports into China unexpectedly rose by 3.0% y/y to $218.3 billion in October 2023, beating market consensus of a 4.8% drop and swinging from a 6.2% drop in September. This was the first growth in purchases since February following efforts from Beijing to stimulate domestic demand and signs of stockpiling.

Considering January – October, the country’s trade surplus narrowed by 2.7% to $684.04 billion, with exports shrinking 5.6% while imports declined 6.5%.

ETFs: (FXI), (KWEB), (CQQQ), (MCHI), (ASHR), (YINN), (TDF), (CHIQ), (GXC), (EWH), (KBA), (YANG), (CXSE), (CAF), (CWEB), (PGJ), (KURE), (CHIX), (CYB).