There was no growth in Chinese exports in May, and the markets are weak because of it.
But... I caught this little ditty at the very tail end of one of the reports on the subject:
"One of the reasons the May export data was so grim is that the government had cracked down on the speculative activities that had created double digit rises in export growth every month this year, even as China's main markets slowed.
"The dramatic slowdown in yoy (year-on-year) export growth in May in part reflects the impact of a clamp down by the government on firms dressing up financial inflows as exports," Louis Kuijs, an economist at RBS, said in an emailed note.
China's customs also acknowledged the lack of extraneous factors, reflected in the fact that exports to Hong Kong, the main centre for currency arbitrage and warehouse storage, grew only 7.7 percent in May, down from a 57 percent surge in April.
"The arbitrage trade to Hong Kong has basically been curbed and the trade between mainland and Hong Kong dropped sharply," it said on its website"
... I had heard about the practice of expressing "payments from abroad" that have little to do with exports... as de-facto exports... called "financial inflows" in this piece. It looks to me like the government is trying to get exporters to call a spade a spade, and there's an adjustment period as the transition is made.
We'll find out late tomorrow if other economic measures are consistent with yesterday's trade data being a "one-off" occurance. Stay tuned, fans of granular Chinese economic data.
Chinese exporters have been double dipping with the export $$ numbers and are now forced to be accurate in their reporting !! wonder how many other clerical errors have occoured in their accounting practices over the years ?? guess they need to go back to their abacus calculating system for they can not understand that in the 21 st. Century computers never lie !!! $$$
Sentiment: Strong Sell
It's good to see them make adjustments toward a more accurate number.
I read 2, different, negative-influencing adjustments in the April figures. 2nd quarter GDP should be in the range being targeted by the central committee.