Chinese exports declined for the second straight month in August even after the devaluation of its currency and successive interest rate reductions. Moreover, imports logged a double-digit decline signaling weak domestic demand.
Exports fell 5.5 percent year-on-year in August following the prior month's 8.3 percent decrease. Economists had forecast a 6.6 percent drop.
At the same time, imports slid 13.8 percent after easing 8.1 percent in July. Imports were expected to fall at a slower pace of 7.9 percent.
Consequently, the trade balance showed a surplus of $60.24 billion in August. It was well above the expected level of $48 billion.
In yuan terms, exports slid 6.1 percent and imports dipped 14.3 percent, taking the trade surplus to CNY 368 billion.
After the release of weak export figures last month, the People's Bank of China devalued its currency on August 11. The devaluation was the biggest one-day reduction in value in two decades.
As the central bank sold dollar to stabilize the yuan exchange rate, country's foreign exchange reserves declined by the most on record in August. Foreign exchange reserves fell by $93.9 billion to $3.56 trillion in August.
In August, the PBoC cut its interest rates for the fifth time since last November and reduced reserve ratio to support lending.
The second-largest world economy showed little signs of revival despite various measures taken by both the government and central bank.
According to official data released on Monday, the economy expanded only 7.3 percent in 2014, suggesting a downward revision to its previous estimate of 7.4 percent.
Julian Evans-Pritchard, a China economist at Capital Economics, said trade would likely have been stronger in August had it not been for temporary disruptions to industrial activity as a result of the Tianjin warehouse blast and factory closures ahead of last week's WWII Victory Day parade.
The economist said trade growth ought to recover over the coming quarters.
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