Chinese Reseves Rise in April, M2 Grows 11.1pc

M2 climbed 11.1 percent in the past 12 months, well above the prior target range of 8 to 9 percent. The 3-month rolling growth rate declined from 20.1 percent to 14.5 percent.

FX reserves climbed $30 billion. Reuters: China FX reserves unexpectedly rise to $3.091 trln in April

Why did reserves rise? The country exported much more than it imported. Reuters: China's April exports rebound but outlook remains grim
Overseas shipments in April rose 3.5% from a year earlier, marking the first positive growth since December last year, customs data showed on Thursday. That compared with a 15.7% drop forecast in a Reuters poll and a 6.6% plunge in March.

The increase was driven in part by rising exports of medical equipment, traditional Chinese medicine and textiles including masks. China exported millions of tonnes of medical products worth 71.2 billion yuan ($10 billion) in the March-April period, according to the customs agency. The daily export value of medical supplies jumped by more than three times last month.

...Imports sank 14.2% from a year earlier, the biggest contraction since January 2016 and below market expectations of an 11.2% drop. They had fallen 0.9% the previous month.

The soft imports reading was due to weak domestic demand and declines in commodity prices. The shutdowns outside China also dealt a heavy supply shock to the country’s importers.
No nation needs the debt increase caused by coronavirus, including China.

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