More Warnings Signs in China

The manipulated equity markets in China have rebounded (which is what happens when you restrict selling), but the problems continue. China's exports and imports have been declining for months, which is further evidence of recession and directly contradicts the "official" GDP fantasy reports of 6.9% annual growth.

Export / Import Data

Here is the latest export / import synopsis from a recent Bloomberg News article:

"China’s exports declined for a fourth straight month in October, adding to signs of mounting headwinds facing the world’s second-largest economy. Overseas shipments dropped 3.6 percent in October in yuan terms, the customs administration said Sunday, compared with a 1.1 percent decline in September.

Imports fell for a 12th straight month, declining 16 percent in yuan terms, after a 17.7 percent decrease the prior month.
Imports from all 10 of the major trade partners listed by the customs administration declined in the first ten months. Australia’s imports plunged 25.7 percent."

Conclusion

China has the second largest economy in the world. Unfortunately, their GDP figures are manipulated, as are their equity markets. As a result, we need to look further when evaluating their economy and the potential impact on global markets. China's exports have declined for four consecutive months and imports have dropped for the 12th consecutive month. China's economy is shrinking, not expanding.

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About Brian Johnson

I have been an investment professional for over 30 years. I worked as a fixed income portfolio manager, personally managing over $13 billion in assets for institutional clients. I was also the President of a financial consulting and software development firm, developing artificial intelligence based forecasting and risk management systems for institutional investment managers. I am now a full-time proprietary trader in options, futures, stocks, and ETFs using both algorithmic and discretionary trading strategies. In addition to my professional investment experience, I designed and taught courses in financial derivatives for both MBA and undergraduate business programs on a part-time basis for a number of years.
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