China's International Trade Highlights Uneven Recovery at Home and Abroad, Stock Indexes Advance

Li Chen
09 May, 2024
Hong Kong

Benchmark indexes in Shanghai and Hong Kong drifted higher after China's exports rose more than expected. 

China's goods and services exports in April rose 1.5% to $292.5 billion, and imports advanced 8.4% to $220.1 billion from a year ago, respectively. 

The trade surplus in April fell to $72.4 billion, compared to $86.5 billion a year ago and $58.6 billion in March. 

Exports declined 7.5% and imports edged slightly lower from the previous month, respectively, the General Administration of  Customs reported Thursday.  

China's exports are likely to rebound in 2024 after slumping 4.6% in the previous year, indicating rising demand from the U.S. and ASEAN regions. 

However, imports are still struggling amid a fragile domestic economic recovery.

Exports to the U.S. declined 1.6% in April, dropped 3.3% to the European Union, but rose 20.4% to the ASEAN region from a year ago, respectively. 

China's international trade balance for the first four months was $255.7 billion, compared to $266 billion in the same period a year ago. 

Exports rose 1.5% to $1.1 trillion, and imports advanced 3.2% to $842.9 billion in the first four months of 2024. 

The CSI 300 index gained 1% to 3,667.50, and the Hang Seng index advanced 1.1% to 18,538.57. 

The market mood was also bolstered in the hopes that more cities across China are likely to relax curb measures in support of the property market. 

Hangzhou eliminated several buyer qualification requirements imposed several years ago on home purchases following a similar move by the southwest city of Chengdu. 

In addition, as many as 55 cities have allowed the lowering of mortgage rates to support home sales, following the Politburo meeting in April. 

Longfor Group advanced 5.7% to HK$12.16, China Vanke jumped 8.8% to HK$4.84, and China Resources Land added 3.4% to HK$30.15. 

Automakers traded mixed in the hopes that rising exports will support the growth in electric vehicle makers' sales growth in the current quarter. 

BYD increased 0.4% to HK$225.20, Li Auto declined 1.1% to HK$107.80, Nio added 0.4% to HK$42.25, and Xpeng advanced 0.4% to HK$32.40. 

Benchmark indexes in Hong Kong soared more than 7% in April and extended gains by 4% in May in the hopes that regulatory reforms and supportive measures by the People's Bank of China will improve market confidence. 

However, measures announced by the local authorities are likely to fall short of market expectations, and consumer confidence remains weak amid an uneven economic recovery and a weakening job market.