China’s trade figures for the combined period of January and February have remarkably exceeded expectations, with exports rising by 7.1% yoy , surpassing the anticipated 1.9% increase. Imports also showed a robust performance, climbing 3.5% yoy, which beat the forecast of 1.5% growth.
This led to trade surplus of USD 125.2B, not only exceeding the expected USD 110.3B but also marking an increase from last year’s USD 103.8B during the same period.
Separately, Pan Gongsheng, PBoC, pointed out yesterday that there was room for further reductions in banks’ reserve requirement ratios the percentage of reserves banks are required to hold against deposits. Such a move would free up additional liquidity for lending and investment, potentially stimulating economic activity.
