Alibaba, JD And Peers Surge, Defying Weak October Chinese Trade Data Showing 1st YoY Export Decline Since May 2020

Zinger Key Points
  • China's economic softness and COVID-related disruptions reflected in October trade data released by the government.
  • Exports and imports fell year-over-year in USD terms, belying expectations for increases.
Alibaba, JD And Peers Surge, Defying Weak October Chinese Trade Data Showing 1st YoY Export Decline Since May 2020

U.S.-listed Chinese stocks are advancing in premarket trading on Monday, largely ignoring weak trade data out of the country that showed exports recorded their first year-over-year drop since May 2020.

What Happened: China’s exports fell 0.3% year-over-year in U.S. dollar terms in October, data released by China Customs showed Monday. Economists, on average, expected exports to climb 4.3%, slower than the 5.7% increase in September, Reuters reported.

The year-over-year decline marked the first drop since May 2020 and came about due to weak exports to the U.S., China’s top single-country trading partner, and the European Union, CNBC said, citing its internal calculations.

Imports declined 0.7%, belying expectations for a 0.1% increase, according to Reuters.

Exports and imports totaled $298.37 billion and $213.22 billion, respectively in October. Given the faster rate of decline in imports, China raked in a trade surplus of $85.15 billion.

In yuan terms, exports and imports, however, rose 13% and 5.2%, respectively.

See also: Nio Says Production Back On Track After Hit From China COVID-19 Curbs

China Stocks Steady: The trade data reflected production disruptions in the wake of the COVID-19 resurgence and, the resultant, economic softness.

Oversold China stocks rose despite the weak trade data. These stocks began to trend lower ever since the start of 2021 due to the domestic government’s regulatory clampdown, China’s economic softness and fears of potential delisting from the U.S. They have lost a bulk of their market valuations amid the turmoil.

In premarket trading on Monday, Alibaba Group Holding Limited BABA rose 1.36% to $70.76, according to Benzinga Pro data.
JD.com, Inc. JD advanced 1.62% to $45.10.
Pinduoduo, Inc. PDD surged 1.86% to $63.04.
Nio, Inc. NIO climbed 2.40% to $11.96.
XPeng, Inc. XPEV rallied 4.82% to $8.26.
Li Auto, Inc. LI moved 3.50% higher to $18.95.

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