WEAK EXPORT OUT-TURN IN CHINA ADDS TO GROWTH CONCERNS

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July 10, 2013

BEIJING - China’s exports fell by 3.1% y/y in June, adding to pessimism about near-term growth prospects. Exports fell across all main developed markets: US (-5.4% y/y), the EU (-8.3% y/y), and Japan (-5.1% y/y), while exports to the ASEAN region were robust (+10.2% y/y). bbva Bank points out that, notably, exports to Hong Kong fell by 7.0% y/y, suggesting further effects on the data from the Government’s crackdown of over-invoicing, implying that the actual overall export data may not be as bad as the headline figures suggest.