China’s dismal trade numbers for June far underperformed market expectations, with both exports and imports contracting last month against forecasts for a much better performance compared to May.
According to economists, this huge miss in China’s trade numbers could be attributed to an underestimation of how severe the slowdown in global demand actually is.
“Markets are underestimating weakness in external demand conditions. The fall in exports is not all about the government’s crackdown on over-invoicing,” Junwei Sun, Beijing-based economist at HSBC told CNBC on Wednesday, referring to the government’s efforts to prevent export firms from overstating theirbusinesses in order to bring funds into the country and surpass capital restrictions.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015