China To Face Growing Pressure On Exports

China will face increased downward pressure on exports as the leading PMI index of major countries weighted by China’s exports has declined rapidly since June, wrote Zhong Zhengsheng, chief economist of Ping An Securities in a commentary published by Caixin. He said stabilising economic growth requires greater progress in boosting domestic investment. The 0.3% y/y decline in October exports was mainly attributed to the fall in mechanical and electrical products and labor-intensive products, as real estate-related products - such as home appliances, audio and video equipment, and lamps - dropped sharply following the cooling in the European and American property markets. Exports to U.S. and EU has become a significant drag, while exports to ASEAN countries remain positive.