China’s exports rose 2.1% year-on-year in June, compared with a decline of 2.8% the prior month, according to data published by the General Administration of Customs.
Export numbers are above market consensus of a 1.2% gain. During the first six months of the year, exports rose about 0.9% year-on-year in RMB terms.
Imports dropped by 6.7% in June in the eighth consecutive monthly decline, compared to a decrease of 18.1% in May.
China’s monthly trade surplus narrowed to RMB284.2 billion in June, down from RMB366.8 billion in the previous month.
The trade surplus during the first half of the year totaled RMB1.61 trillion.
"The soft trade data in the second quarter suggest that China’s second quarter GDP, to be released on 15 July, will under-perform," predicts a research report by ANZ.
"The large trade surplus will have limited impact on the RMB exchange rate…However, as the People’s Bank of China is committed to safeguarding financial stability during market turmoil, the RMB exchange rate will likely remain stable in the foreseeable future," according to the report.