Chinese Export Data Fell Beyond Expectations 0 1589

The economy of China is heavily reliant on its exports. Fall in exports could mean that China is losing out its important position in the trading arena. The exports from China fell greatly in December which led to the downfall of Chinese stocks. The exports decreased by 6.1% while the imports increased by 3.1%. Both the imports and exports disappointed more than the forecast.

Economists suggested that exports will reduce by 3.5% and imports will increase by 2.4%. However, in reality, Chinese economy faced a much worse condition in the past year. The yearly exports decreased by 7.7% and imports by 5.5%. The Shanghai composite was 3112.3 and Shenzhen composite was 31.3 points. There wasn’t much hope for the China export data because of the surprise election of Donald Trump. The president-elect is visibly and vocally bitter about the Chinese currency policies.

Korea kept its benchmark unchanged at 1.25% as it is waiting for the clarity on policy from the new Trump administratin. As a result, Kospi lost 0.5%. Samsung electronics lost 3.45% following the bribery corruption scandal involving the Samsung President Park Geun Hye. Samsung Heavy also lost 0.94%. The ASX 200 of Australia also lost 0.79% and the big four of Australia reduced by more than 1%. Hang Seng index of Hong Kong increased by 0.4%. The greenback struggled to gain its dominance over a basket of currencies as it was trading at 101.4 which was much better than 100.72 on Thursday.

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