China exports rise 7.2% in August as global demand lifts

BEIJING - Exports from China increased by 7.2% on-year to US$190.61 billion in August compared to 5.1% in July, according to the National Bureau of Statistics. The stronger-than-expected surplus stems from a rebound in global demand and is another sign that the economy is recovering following an increase in both the official and HSBC PMI readings. The rising surplus also suggests that appreciation pressures on the RMB are likely to continue in the foreseeable future.

The People’s Bank has intervened frequently in recent weeks by buying US dollars and selling RMB to prevent the yuan from strengthening too rapidly. This has benefitted China’s exporters and shows the Government’s commitment both to the stability of the currency and the economy as a whole.