China’s May trade data

On June 10, China released its trade data for May. The country’s dollar-denominated exports rose 1.1%, while its imports in US dollar terms fell 8.5%. China’s May trade data was a mixed bag for markets. While the exports were better-than-expected, the imports were lower compared to the expectations.

China’s May Trade Data: Exports Beat, Imports Miss Expectations

Mixed data

Except for April when China’s imports rose 4%, the country’s import data has been weak and fell for four consecutive months before April. After accounting for May, China’s imports have fallen on a year-over-year basis in five of the last six months. Fewer Chinese imports reflect sagging domestic demand. While China said that its economy grew 6.4% in the first quarter, some of the recent data points have shown moderation in the economy. Falling imports point to a slowdown in China’s domestic demand. Chinese equity markets have underperformed global markets this year. The iShares China Large-Cap ETF (FXI) has risen 3.7% year-to-date, while the SPDR S&P 500 ETF (SPY) has gained 15.6%.


Since China’s exports increased more than expected and imports missed the mark, the country’s trade surplus ballooned to $41.65 billion. China’s May trade surplus was almost double analysts’ expectations—a sharp rise from the $13.8 billion surplus reported in April. China’s April trade surplus was lower than expected. The country’s imports rose, while exports fell in April.

Amid the escalation in the US-China trade war, there has been pressure in Chinese stocks. Alibaba (BABA), Baidu (BIDU), and (JD) have lost 15.5%, 33.4%, 11.1% in the second quarter. Last year, Alibaba’s co-founder Jack Ma predicted that the US-China trade war could last for decades. Despite the second-quarter sell-off, Alibaba has risen 12.5% for the year. US stock markets have also been impacted by the trade war. They have recouped some of their losses in June.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.