CHINESE EXPORT GROWTH CRASH-LANDS IN FALSE-INVOICING CRACKDOWN

BEIJING - China’s export growth crashed to just one per cent in May, after an apparent surge in recent months which was boosted by over-invoicing and round-tripping to use trade to bring in hot money. ANZ Bank says the trade slowdown largely reflects Chinese Government efforts to crack down on trade activities that seek financial gains on large offshore and onshore interest rate differentials and RMB’s appreciation. The one per cent export increase in May compared with 14.7% in April and market expectations of a 7.4% increase.