Chinese goods are in high demand, recording a massive, half a trillion-dollar surplus in the first 6 months of 2025, as Chinese firms and factories managed to circumvent US tariffs by drastically increasing sales to other nations and counter the projected adverse effects.

The report showcased that exports continue to outpace imports and beat analysts expectations, yet to the market’s surprise, importing activity has managed grow for the first time in 2025, indicating a preliminary return of domestic demand.

More specifically, exports exceeded the 5% growth expectation and rose by 5.8% and imports grew by 1.1%, yet the were below the 1.3% expectation. Exports towards ASEAN countries, Japan, Europe, South America are growing again, as purchasers rush to buy up Chinese goods and at the same time US goods continue to fall out of favour.

The truce with the US and the agreement to ease trade hostilities at the Geneva meeting a few months back, has played a role in achieving the aforementioned success of China, yet dangers still loom and evolving impact of the US-Sino trade relations will be closely monitored.

Albeit the domestic economy being persistently weak, the continuous outperformance of exporting activity is expected to keep the Chinese economy alive and competitive, reducing for the time being the urgency for additional stimulus measures from the government.

Onwards traders will turn their attention towards the latest GDP update from China, which will most likely topple estimates, possibly making Chinese stocks more attractive in the eyes of investors that seek to diversify away from US equity holdings.

Technical Analysis

HSI Chart – Hang Seng Index continues its ascend towards March highs after robust trade data

Resistance: 24875 (R1), 26300 (R2), 27700 (R3)
Support: 23200 (S1), 22000 (S2), 20900 (S3)