China’s trade data for April has quashed investors’ hopes re the recovery there, with both exports and imports falling more than expected.
The world’s second-largest economy is suffering from weak demand at home and abroad.
Exports fell 1.8 percent compared with April last year, while imports slumped 10.9 percent – down for the 18th consecutive month.
Chinese exports to its top market, the United States, fell 9.3 percent last month, while shipments to the European Union, the second biggest market, rose 3.2 percent.
Recovery hopes were further dimmed by an article on Monday in the People’s Daily, the Communist Party’s mouthpiece. It cited an “authoritative source” saying China’s economic trend will be “L-shaped”, rather than “U-shaped”, and definitely not “V-shaped”, but the government will not use excessive investment or rapid credit expansion to stimulate growth.
Chinese share indexes fell sharply again on Monday, reaching eight-month lows.
Following the market’s nearly 3 percent slump on Friday, China’s blue-chip CSI300 index fell 2.1 percent, to 3,065.62, while the Shanghai Composite Index lost 2.8 percent
An index tracking raw material shares tumbled nearly 5 percent as China’s commodity prices continued to fall amid a government crackdown on speculative trading.