China Exports Growth Failed to Lift Shanghai Indexes, Hong Kong Stocks Advanced

Li Chen
10 Sep, 2024
Hong Kong

Market indexes in Shanghai and Hong Kong diverged as investors reacted to the latest update on international traded data. 

The Hang Seng index gained 0.3%, but the mainland-focused CSI 300 index declined 0.5%, and domestic economic worries overshadowed strong export performance. 

China's exports in August jumped 8.7% to $308.7 billion; imports advanced 0.5% to $217.6 billion, resulting in a trade surplus of $91.0 billion, an increase from $84.6 billion in July. 

China's exports to the U.S., European Union, and Association of Southeast Nations continued to advance, reflecting its strong competitiveness and lack of alternatives. 

Exports to the EU rose 13%, to the ASEAN region advanced 7.8%, and to the U.S. gained by 4.9%. 

Exports to the U.S. advanced for the third month in a row, amid rising demand for electronics, industrial intermediary products, and higher prices driven by inflation. 

Despite rising geopolitical tensions, China's exports have continued to advance in nine of the last ten months, driven in part by a surge in exports of automobiles, consumer electronics, and ship vessels. 

Passenger vehicle exports soared 40% to 610,000, smart phone exports advanced 6.7%, and ship vessel shipments jumped 40% from a year ago. 

The increase in passenger vehicle exports was driven in large part by the surge in exports to Russia and increased shipments of electric vehicles to the ASEAN region. 

In the year to August, China's exports rose 4.6% to $2.31 trillion, imports increased by 2.5% to $1.71 trillion, and trade surplus jumped 11.2% to $608.5 billion. 

Crude oil volume fell 7% in August, highlighting weak domestic demand and partly reflecting China's shift to renewable energy sources. 

 

China Stock Movers 

The Hang Seng index increased 0.3% to 17,244.67 and the CSI 300 index fell 0.5% to 3,176.33. 

Alibaba Group jumped 4.6% to $81.90 after the company's stock was available for trading by mainland investors on the Stock Connect platform. 

Meanwhile, other leading tech stocks lacked direction amid weak demand from investors. 

Tencent Holdings edged down 0.7% to HK $368.60, JD.com added 1.1% to HK $102.40, Meituan increased 0.6% to HK $119.40, and Baidu advanced 1.8% to HK $80.50. 

Wuxi Biologics declined 3.2% to HK $10.98 and Wuxi Apptech fell 7.8% to HK $33.15 after the U.S. House of Representatives placed additional restrictions on the companies citing national security concerns.