China: Strong trade data – TD Securities

Analysts at TD Securities note that China's trade surplus for July printed at US$45.1, above consensus expectations of US$42.7 bn.

Key Quotes

“Exports grew 3.3% y/y, well above expectations for a 1.0% decline. Import performance was also better than expected, declining by 5.6% y/y against a consensus forecast of -9.0%.”

“China's bilateral trade surplus with the US fell 6.5% m/m to US$28.0 bn in July (flat y/y) for a year-to-date total surplus of US$168.6 bn. We think this improvement may be temporary due to front-loading related to the Japan-Korea dispute and deteriorating relations with the US.”