China Trade Growth Defies Signs of Slowdown

China’s export and import growth unexpectedly accelerated in January, defying signs the world’s second-largest economy will slow while fueling speculation that fake shipments are resurfacing.

Overseas shipments rose 10.6 percent from a year earlier, the General Administration of Customs said on 12 February in Beijing, a pace that may be distorted by false invoices and holidays and compares with the median projection of economists for a 0.1 percent gain. Imports (CNFRIMPY) advanced 10 percent, leaving a trade surplus of $31.9 billion, the widest for January since 2009.

Asian stocks extended gains and the Australian dollar jumped as the report provided some evidence of support for an economy that’s projected by analysts to grow at its slowest pace in 24 years in 2014. Economists were split over whether the figures were exaggerated again after a crackdown by authorities last year on the use of inflated export invoices to disguise capital inflows.

Rising Yuan

China’s exporters have been challenged by a yuan that’s appreciated about 2.8 percent against the U.S. dollar in the last 12 months. The yuan weakened 0.04 percent on 12 February to 6.0630 per dollar.

China’s exports to Hong Kong in December exceeded the city’s reported imports from the mainland by about 70 percent, the biggest difference since April.

Shipments from China to Hong Kong fell 18.3 percent in January from a year earlier to $26.3 billion, contrasting with a 10.7 gain in exports to the U.S. and an 18.8 percent jump in goods bound for the European Union, according to today’s customs figures. Hong Kong will report January trade data on Feb. 25.