China Exports, Forex Reserves, Lending in Focus

123jump.com Staff
14 Oct, 2009
New York City

September exports from China fell at a slowest pace in a year as shipments to EU and US recover to a one-year high. Bank of China reported a sharp rise in lending in the nine months. Foreign exchange reserves in China surge to twice the level of Japan.

[R]8:00 AM Hong Kong – September exports from China fell at a slowest pace in a year as shipments to EU and US recover to a one-year high. Bank of China reported a sharp rise in lending in the nine months. Foreign exchange reserves in China surge to twice the level of Japan.[/R]

World markets rallied on the back of improved sentiment and better than expected economic data.

In New York trading, the Dow increased above 10,000 for the first time since October 3 close in 2008. The gain of 1.5% today lifted the index to 10,015.86 and it has rebounded 53% from its low on March 9. The index is still 29% below its high of 14,164.53.

China reported smallest decline in exports in September that sparked a rally in commodities. UK reported record unemployment rate of 7.9% but the quarterly increase in jobless people was the smallest in a year. U.S. reported smaller than expected decline in retail sales and strong earnings from Intel, JP Morgan Chase and CSX.

Customs Bureau in China reported on its Web site that September exports decreased 15.2% from a year ago and fell 20.1% after adjusting for seasonality. Adjusted exports increased 6.3% from August imports increased 8.3%.

Total exports in the month declined to $115.9 billion and imports fell 3.5% to $103 billion. Exports to the US and EU increased to the highest monthly level since November as the worldwide economic momentum increase. Exports to US increased to $21.2 billion

The Bank of China reported that new bank lending in the year to September increased to 8.65 trillion yen ($1.265 trillion), up 149% from a year ago.

Foreign exchange reserves of China increased to $2.273 trillion at the end of September, more than twice that of Japan’s $1.05 trillion.

China Gainers & Losers

The shipping, railroad and port operators increased after the release of exports and imports statistics.

China Railways increased 2.5% to 6.09 yuan and China Shipping Container increased 2.2% to 4.58 yuan. Cosco Pacific increased 1.2% to HK$11.70.

Property developers also increased after central bank in China reported a sharp rise in lending. Gemdale Corp increased 5.8% to 14.67 yuan after it said property sales increased 57% in September.

China Merchants Property Development Co increased 5.2% to 27.3 yuan after it estimated third quarter net to surge as much as three fold to between 463 million yuan and 513 million yuan.

China Hi- Tech Group surged 10% to 7.10 yuan after it estimated earnings to be more than twice compared to a year ago in the first nine months.

Henderson Land Development Co gained 2.2% to HK$54.1 after it sold a duplex apartment that was valued at HK$88,000 per square foot according to the company.

China Merchants Holdings (International) Co increased 2.5% to HK$26.35.

Cnooc Ltd increased 3.5% to HK$11.90 and PetroChina increased 5.2% to HK$9.96.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 16.35 or 0.16% to 10,060.21, Hang Seng index in Hong Kong increased 419.12 or 1.95% to 21,886.48, and CSI 300 index in China higher 28.88 or 0.90% to 3,227.40. ASX 200 index in Australia increased 45.40 or 0.95% to 4,831.10. The FTSE Bursa KL Composite index in Malaysia was higher 13.33 or 1.08% to 1,246.84.

The Kospi Index in South Korea increased 20.16 or 1.24% to close at 1,649.09 SET index in Thailand closed lower 15.20 or 2.04% to 731.47. JSE Index in Indonesia increased 39.73 or 1.61% to 2,511.72. The Sensex index in India increased 204.44 or 1.20% to 17,231.11.