China economy shows more weakness as imports, exports fall
Chinese imports fell for a seventh straight month in May while exports also sank, data showed today, as the world's <g data-gr-id="25">second biggest</g> economy shows protracted weakness in the face of government easing measures.
The disappointing figures also come as leaders try to transform the economy from one where growth is driven by consumer spending rather than government investment and exports.
Imports slumped 17.6 <g data-gr-id="22">per cent</g> year on year to USD 131.26 billion, the General Administration of Customs said in a statement.
The decline was much sharper than the median forecast of a 10 <g data-gr-id="18">per cent</g> fall in a Bloomberg News poll of economists and followed April's 16.2 <g data-gr-id="19">per cent</g> drop.
"Import growth disappointed the market with a fall even larger than that in April, suggesting domestic demand remained weak," Nomura economist Zhao Yang said in a research note.
Exports dropped for the third consecutive month, falling 2.5 per cent to USD 190.75 billion, Customs said, although that was better than the median estimate of a four <g data-gr-id="29">per cent</g> fall in the Bloomberg survey.
The sharp decrease in imports meant the trade surplus expanded 65.6 per cent year on year to USD 59.49 billion, according to the data.
In yuan terms imports fell 18.1 per cent, exports decreased 2.8 <g data-gr-id="23">per cent</g> and the trade surplus expanded 65.0 per cent.
Govt bonds over-subscribed; FIIs put in bids worth Rs1,487-cr
Signalling <g data-gr-id="59">robust</g> demand for government bonds, an auction of debt securities attracted bids of Rs 1,487 crore, over two times of Rs 654-crore put on offer, from overseas investors. The auction was held on Monday at BSE's ebidXchange platform for allocation of Foreign Institutional Investors (FIIs) investment limits in government debt securities worth Rs 654 crore.
At the end of <g data-gr-id="55">two-hour</g> auction this evening, 18 bids were declared successful. The debt auction quota gives overseas investors the right to invest in debt, up to the limit purchased. According to information available with the depositories, total investments, including limits acquired by foreign investors through auction route, stood at Rs 1,21,748 crore till May 14, which is 97.84 of total permitted investment limit of Rs 1,24,432 crore in government debt securities. Consequently, the exchange had conducted an auction for the allocation of unutilised debt limits. The earlier auctions for government debt securities have always been over-subscribed multiple times, given the huge interest among foreign investors for these bonds.