China's Exports Advanced and Inflation Accelerated In April

Li Chen
11 May, 2026
Hong Kong

Stocks in mainland China and Hong Kong extended the previous week's gains, reflecting global gains in semiconductor stocks. 

The Hang Seng Index increased 0.3%, and the CSI 300 Index advanced 1.4% powered by a strong rally in AI- and semiconductor-related stocks. 

China's Vice Premier Ding Xuexiang visited the research and development center of Huawei Technologies in Shanghai, sending a signal that Beijing is committed to domestic chip development and self-sufficiency. 

 

China's Inflation Accelerated In April as Supply Disruptions In Hormuz Persisted 

China's annual inflation accelerated in April amid a surge in energy prices, according to the National Bureau of Statistics.

The consumer price index increased to 1.2% from 1.0% in March, fueled by higher commodity prices amid the Middle East conflict.

Food prices fell 1.6%, reversing a 0.6% rise in March; non-food inflation accelerated to 1.8% from 1.2%; and housing costs continued to decline at the same annual rate of 0.2% as in the previous month. 

China's producer price inflation accelerated to 2.8% in April from 0.5% in the prior month, a separate report from the NBS showed. 

The measure of wholesale prices rose at the fastest pace since July 2022, an increase for the second consecutive month fueled by surging commodity and energy prices amid supply disruptions in the Persian Gulf. 

 

China's Exports Defy Hormuz Shock with Record Shipments in April

China's exports continued to expand in April despite the ongoing U.S.-Iran war and supply disruptions in the Strait of Hormuz. 

Exports increased 14.1% to $359.4 billion, accelerating from 2.5% in March, according to the latest monthly report from the General Administration of Customs. 

Customers rushed to order products amid fears that the ongoing war in the Middle East could push prices even higher. 

Shipments to the U.S. advanced 11.3% to $36.8 billion, reversing a 26.5% decrease in the previous month, despite aggressive tariffs imposed by the Trump administration. 

Shipments to the ASEAN region advanced 15.2%, to the European Union rose 13.4%, and to Latin America gained 13.7%. 

For the first four months to April, exports increased 14.5% to $1.34 trillion; however, sales to the U.S. decreased 10.2% from a year ago, respectively. 

Overall imports increased 25.3% to $274.6 billion, and the trade surplus advanced to $84.8 billion from $51.1 billion in March but narrowed from $95.6 billion in the month a year ago. 

China's increase in import value was driven by an increase in commodity prices and a shift in volume mix, and the country imported 38.4 million tons of crude oil in April, reflecting an increase of 13.2% in value and a 20% decrease in volume.

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.3% to 26,318.37, and the mainland-focused CSI 300 Index advanced 1.4% to 4,940.41. 

The global rally in semiconductor stocks extended to tech stocks for the third consecutive week, and support from Beijing leadership reinforced positive sentiment for the sector.

GigaDevice, Hua Hong Semiconductor, Nasino, and Montage Technology jumped between 5% and 15%.