China’s exports in fell 3.7% year-on-year in November, compared with a 3.6% decline in October.
Imports in contracted 5.6% year-on-year in November, from a 16.0% drop in October.
The trade surplus remained sizable in November at RMB343.1 billion, compared with RMB393.2 billon in the previous month.
China’s foreign exchange reserve declined by US$87.2 billion to US$3.44 trillion in November, suggesting that China continues to face capital outflow pressure.
"The decline was…partly owning to valuation effect as the Euro and Japanese Yuan depreciated sharply by around 4% and 2% respectively in November. In addition, the sizable monthly trade surpluses, averaging around US$58 billion in the past three months, should help offset capital outflows and fend off depreciation pressure on the RMB," says a research report by ANZ.
The bank added that as China continues to open up its capital account, RMB exchange rate is bound to become more volatile going forward.