EWH - China posts smallest trade surplus in 3 months amid weakening global demand

2023-09-07 00:52:40 ET

• China's trade surplus slumped to $68.36 billion in August 2023 from $78.65 billion in the same period a year earlier, below market forecasts of $73.9 billion, marking the smallest trade surplus since May, as exports dropped more than imports amid persistently weak demand from home and abroad.

• Exports from China dropped 8.8% y/y to $284.87 billion in August 2023, after a 14.5% plunge in July, and better than forecasts of a 9.2% fall, the fourth straight month of decline in exports, amid weakening global demand.

• For the first eight months of the year, exports shrank 5.6% from the same period in 2022 to $2.22 trillion.

• Imports to China declined by 7.3% y/y to $216.51 billion in August 2023, softening from a 12.4% plunge a month earlier while pointing to the seventh time of decrease so far this year.

• The latest result came less market estimates of a 9.0% drop, amid a series of measures from Beijing to spur domestic demand.

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

• More on China economy:

  • China’s manufacturing activity contracts for a fifth straight month to 49.7 in August

  • China cuts one-year loan prime rate to record low of 3.45%

  • China halts youth unemployment data as economy falters

  • China's industrial production, retail sales grows less than expected in July

  • China's CPI falls for first time in over two years; PPI drops more than expected

  • China trade surplus narrows sharply in July as exports, imports both posted double-digit decline

  • China service sector growth of 54.1 in July beats forecasts; composite PMI drops to 6-month low

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