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Fast Money & Foreign Objects
By Bloomberg News Oct 27, 2014 12:01 PM ET
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Photographer: Nelson Ching/Bloomberg
Shipping containers are stacked at the Yangshan Deep Water Port in Shanghai.
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The gap between China’s reported exports to Hong Kong and the territory’s imports from the mainland widened in September to the most this year, suggesting fake export-invoicing is again inflating China’s trade data.
China recorded $1.56 of exports to Hong Kong last month for every $1 in imports Hong Kong registered, leading to a $13.5 billion difference, based on government data compiled by Bloomberg. Hong Kong’s imports from China climbed 5.5 percent from a year earlier to $24.1 billion, figures showed yesterday; China’s exports to Hong Kong surged 34 percent to $37.6 billion, according to mainland data on Oct. 13.
While China’s government has strict rules on importing capital, those seeking to exploit yuan appreciation can evade the limit by disguising money inflows as payment for goods exported to foreign countries or territories, especially Hong Kong. The latest trade mismatch coincided with renewed appreciation of China’s currency, leading analysts at banks and brokerages including Everbright Securities Co. and Australia & New Zealand Banking Group Ltd. to question the export surge.
“This is definitely another important piece of evidence of over-invoicing exports to Hong Kong to facilitate money inflow into China,” said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd. in Hong Kong. “So we shouldn’t be too optimistic about recent export data from China.”
Photographer: Brent Lewin/Bloomberg
Shipping containers and cranes stand at the Kwai Tsing Container Terminals in Hong Kong, China.
Doubts over the data raise broader concerns, as a surge in exportswas believed to have underpinned economic growth in the third quarter. Shen said the economic outlook is “challenging” and more easing is “necessary.”
China’s government noticed the rapid increase in trade of some merchandise with Hong Kong, Shen Danyang, spokesman of the Ministry of Commerce, said at a briefing on Oct. 16. The spokesman said the ministry will step up scrutiny and analysis.
A fax sent yesterday to the State Administration of Foreign Exchange of China questioning the quality of the data wasn’t immediately replied to.
http://www.bloomberg.com/news/2014-...ence-mounts-as-hong-kong-figures-diverge.html
@Domingo Halliburton @Futuristic Eskimo
76 Comments Email Print
Save
Photographer: Nelson Ching/Bloomberg
Shipping containers are stacked at the Yangshan Deep Water Port in Shanghai.
Related
The gap between China’s reported exports to Hong Kong and the territory’s imports from the mainland widened in September to the most this year, suggesting fake export-invoicing is again inflating China’s trade data.
China recorded $1.56 of exports to Hong Kong last month for every $1 in imports Hong Kong registered, leading to a $13.5 billion difference, based on government data compiled by Bloomberg. Hong Kong’s imports from China climbed 5.5 percent from a year earlier to $24.1 billion, figures showed yesterday; China’s exports to Hong Kong surged 34 percent to $37.6 billion, according to mainland data on Oct. 13.
While China’s government has strict rules on importing capital, those seeking to exploit yuan appreciation can evade the limit by disguising money inflows as payment for goods exported to foreign countries or territories, especially Hong Kong. The latest trade mismatch coincided with renewed appreciation of China’s currency, leading analysts at banks and brokerages including Everbright Securities Co. and Australia & New Zealand Banking Group Ltd. to question the export surge.
“This is definitely another important piece of evidence of over-invoicing exports to Hong Kong to facilitate money inflow into China,” said Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd. in Hong Kong. “So we shouldn’t be too optimistic about recent export data from China.”
Photographer: Brent Lewin/Bloomberg
Shipping containers and cranes stand at the Kwai Tsing Container Terminals in Hong Kong, China.
Doubts over the data raise broader concerns, as a surge in exportswas believed to have underpinned economic growth in the third quarter. Shen said the economic outlook is “challenging” and more easing is “necessary.”
China’s government noticed the rapid increase in trade of some merchandise with Hong Kong, Shen Danyang, spokesman of the Ministry of Commerce, said at a briefing on Oct. 16. The spokesman said the ministry will step up scrutiny and analysis.
A fax sent yesterday to the State Administration of Foreign Exchange of China questioning the quality of the data wasn’t immediately replied to.
http://www.bloomberg.com/news/2014-...ence-mounts-as-hong-kong-figures-diverge.html
@Domingo Halliburton @Futuristic Eskimo
