Losing trade

13 April 2016 By Rahul Jacob

Exports grew faster than expected in March helped by comparisons with a weak 2015. First-quarter trade figures are the worst in at least four years. That puts more pressure on Beijing to cut rates and boost spending – and may revive talk of devaluing the yuan.

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Chinese exports rose 11.5 percent from a year earlier in March, customs data showed on April 13, the first increase since June and the largest rise since February 2015.

Imports fell less than expected, declining by 7.6 percent in dollar-denominated terms, led by sharp corrections in imports of tax-free foreign goods, rentals and leasing and imported equipment.

Economists polled by Reuters had expected March exports to rise 2.5 percent, after tumbling 25.4 percent in February - the worst showing since May 2009 - and expected imports to fall 10.2 percent, following February’s 13.8 percent dip.

Asian shares rallied in response to the numbers. By midday the Shanghai Composite index and Hong Kong’s Hang Seng index were both up more than 2 percent.

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