China: Imports disappoint; domestic demand wavers - Nomura

Research Team at Nomura, notes that the Chinese export growth declined to -1.8% y-o-y in April after a strong rebound to 11.5% in March but the March rebound was mainly due to base effect.

Key Quotes

“Import growth disappointed, falling to -10.9% y-o-y from -7.6%, with weaker processing trade, while the improvement in domestic demand may be losing steam.

These data reinforce our view that the debt-fuelled improvement in domestic demand and growth may be short-lived. We maintain our 2016 GDP growth forecast of 6.2%.”