CHINA APRIL GROWTH REBOUNDS, BUT HSBC CAUTIOUS

BEIJING - April trade growth in China rebounded more than expected, resulting in a surplus of US$8.2 billion (vs.a  deficit of US$0.9 billion in March). Apart from a lower base effect, the  import rebound was led by commodities such as iron ore, suggesting that investments remain strong. China's total exports excluding Hong Kong also picked up strongly to 6.8% y-o-y, from a contraction of 4.7% March. However, sequential growth for both exports and imports softened in April, and lower global PMIs suggest bigger external headwinds for export growth in the coming quarters. The level of growth beat expectations, rising to 14.7% y-o-y in April, compared to 10% y-o-y in March (consensus 10%), but seasonally- adjusted growth eased to 7.7% m-o-m from 11.8% m-o-m in March.