China Indexes Jumped 1.7%, Surging Exports Drive Trade Surplus Higher In October

Li Chen
07 Nov, 2024
Hong Kong

Benchmark indexes in China and Hong Kong rebounded from morning losses as investors looked forward to fiscal stimulus announcements from the top legislative body on Friday. 

The Hang Seng index gained 1.3%, and the CSI 300 index advanced 1.9% after recovering from losses at the opening. 

Market indexes were under pressure following the losses in Chinese stocks listed in New York after former U.S. president Donald Trump secured a return to the White House.

Trump had campaigned on imposing as much as 60% tariffs on Chinese goods and implementing additional restrictions on U.S. investments in China. 

However, tariffs are likely to have little effect on Chinese companies, as most of the import duties are paid by U.S. consumers. 

Only 10% of the listed companies in China and Hong Kong are dependent on exporting to the U.S., buffeting most companies from the hostile environment for the Chinese goods in the U.S. and the European Union. 

Investors are looking forward to announcements from the standing committee of the People's National Congress on Friday, and economists are estimating that the lifting of the debt ceiling will provide between 2 trillion yuan ($281 billion) and 7 trillion yuan for fiscal stimulus measures. 

 

China's Surging Exports Drive Trade Surplus Higher In October

China's exports in October rose 12.7% to $309.1 billion; imports decreased 2.3% to $213.3 billion as exporters frontloaded sales ahead of likely tariffs in the U.S. and Europe. 

Exports advanced for the seventh month in a row and rose at the fastest pace since July 2022 as exports front loaded sales ahead of punitive tariffs in the U.S. and EU. 

Exports to the U.S. increased 8.1%, shipments to the European Union advanced 12.7%, and the ASEAN region gained 15.8% compared with a year earlier.

Exports to Russia jumped 26.7% amid rising sales of passenger cars, appliances, and electronics products. 

Trade surplus increased to $95.3 billion in October from $81.7 billion in the previous month and $56.1 billion a year earlier, driven by lower interest rates that contributed to the rising global demand. 

Sales for the first ten months in 2024 increased 5.1% to $2.93 trillion, boosted by higher demand for passenger cars, semiconductors and related products, and household appliances. 

Chinese exporters are bracing for as much as 60% tariffs in the U.S., which could drive down overall exports by more than 5% in 2025.

 

China Stock Movers 

The Hang Seng index rose 1.3% to 20,800.13, and the CSI 300 index advanced 1.9% to 4,101.89. 

Export-driven technology companies, appliance makers, electric vehicle makers, and travel and entertainment companies were in focus. 

Midea Group declined 1.8% to HK $69.60, Haidilao International increased 8% to HK $17.72, ANTA Sports increased 3.6% to HK $88.90, and Galaxy Entertainment Group advanced 4.6% to HK $36.20. 

BYD declined 2% to HK $277.20, Li Auto gained 1.4% to HK $97.0, and Xpeng Inc. gained 1.2% to HK $50.0.