Analysts at TD Securities note that China’s August trade data was generally weak, with exports falling -1.0% y/y (TD 5.7%, mkt 2.2%) and imports falling -5.6% y/y (TD -5.3%, mkt -5.6%), resulting in a smaller than expected trade surplus of $34.84bn from an upwardly revised surplus of $44.58bn in July.

• “China’s FX reserves rose by $3.48bn to $3.107trn in August. However, reserves growth would have been even bigger had it not been for adverse valuation effect (due to a stronger USD), which according to our estimates would have deflated reserves by $7.27bn in August. FX reserves would have grown by $10.75bn had it not been for adverse valuations.”