Chinese exports in May grew about 50 per cent from a year earlier, sources said today, a figure that blew past expectations and fuelled a rise in stock markets globally.
The key Chinese stock index, which had been in negative territory, jumped 2.8 per cent as the strong export growth reassured investors who have been worried that the European debt crisis would weigh on the global economy.
Exports, which are scheduled to be reported as part of broader trade data tomorrow, had been expected to rise 32 per cent year-on-year in May after recording a 30.5 per cent pace in April.
If confirmed, the surge in external demand would suggest that the risk of a Chinese economic downturn is very small, said Huang Lin, an economist with Soochow Securities in Beijing.
"The risk of double-dip (in the world economy) is not as big as many have feared and China's economic growth this year will be above 9 per cent," she said.
European shares extended initial gains, most Asian stock markets clawed back the day's losses, the euro edged up and oil also gained after export numbers were reported.
The surprisingly strong exports came alongside figures showing that the domestic economy was performing in line with relatively strong expectations, three sources said. Chinese consumer prices in May rose 3.1 per cent from a year earlier, accelerating from 2.8 per cent in April, a senior government official told an investors' conference today that was closed to media, according to the sources present at the meeting.
The official also told the audience that new loans in May reached 630 billion yuan ($92.2 billion), falling from 774 billion yuan in April.
Economists expect annual CPI inflation to reach 3 per cent in May, new loans to stand at 600 billion yuan and export growth to be around 32 per cent. Consumer inflation and other activity data are due on Friday. Money and lending figures could be published by the central bank at any time.
Reuters