China’s trade surplus widens in August, exports grow fastest since March 2023

China reported a sharp increase in its trade surplus to USD 91.02 billion in August 2024 from USD 67.81 billion a year earlier, surpassing market expectations of USD 83.90 billion.

Exports from China increased by 8.7% year-on-year in August 2024, the most since March 2023, to a 23-month peak of USD 308.65 billion, exceeding market forecasts of 6.5% and accelerating from a 7.0% rise in July, marking the fifth straight month of growth in shipments, amid robust foreign sales.

Meanwhile, imports to China rose by 0.5% y/y to USD 217.63 billion in August 2024, missing market estimates of 2.0% while noticeably slowing from a 7.2% jump in the prior month amid fragile recovery in domestic demand.

The Shanghai Composite fell 0.5% to around 2,720 on Tuesday, hitting fresh seven-month lows as sentiment took a hit after the US government proposed new sanctions on Chinese biotech firms.

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Currency: (CNY:USD)

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