China imports tumble 20 per cent amid fears over nation’s slowing economy

China’s global trade surplus almost doubled from a year earlier to a record-high $60.3 billion.

“Previous policies are gradually gaining traction”.

In yuan terms the figures looked more promising, with exports down just 1.1 percent year-on-year, compared to 6.1 percent in August, and 8.9 percent in July. On the export side, a moderation in declines offers the first indication that the People’s Bank of China’s surprise devaluation of the yuan in August is giving a boost to competitiveness.

Imports plunged 20.4% in September from a year earlier to $145.2bn, customs officials said, due to weak commodity prices and soft domestic demand.

China’s trade slump extended into September, with imports collapsing and exports remaining feeble, underscoring the fragile state of the world’s number two economy.

Imports are also a leading indicator for exports, with a large share of materials and parts re-exported as finished goods.

Slipping economic figures have raised expectations at home and overseas that Beijing will take stronger stimulus measures.

Chinese exports, once a primary growth engine for the economy, have faced more headwinds from higher labor and land costs and the rise of low-end competitors in Southeast Asia.

S&P 500 (.SPX)-listed corporations are expected to post a 5.3 percent fall in third quarter 2015 earnings growth, the first third quarter decline in six years, according to consensus data from S&P Capital IQ.

“For the major commodities like oil, copper, etc. we’re actually seeing a pretty healthy trend in import volumes”. On Monday the data calendar reaches its crescendo with the release of industrial production, retail sales and urban fixed asset investment figures for September, along with the most important of them all, Q3 GDP.

While the surplus is largely due to weak imports, it does help ease pressure on the country’s money supply from capital outflows, the ANZ economists argued.

However the significant fall in imports means domestic demand is not as strong as the government would have hoped.

China’s September exports continued to struggle against weak global demand.

Weakness in trade has fueled doubts that Beijing can hit its economic growth target this year of about 7 percent.