Alibaba
and
JD.com
were among the stocks falling in Hong Kong trading Tuesday as China’s latest trade data painted a mixed picture for the world’s second-largest economy.
Chinese exports fell for a sixth consecutive month in October, dropping 6.4% from a year ago. Economists surveyed by FactSet expected a decline of 3.7%. There was some good news, however, as imports unexpectedly rose 3%, beating estimates of a 3.5% fall.
The surprising jump in imports suggests stronger-than-expected Chinese consumption, which should ultimately be good for e-commerce giants such as
Alibaba
(ticker: BABA) and
JD.com
(JD). However, both stocks, along with other tech names including
Baidu
(BIDU), closed lower.
Alibaba stock fell 2%, while JD.com was 2.2% lower as Hong Kong’s Hang Seng Index closed 1.7% down. The companies’ American depositary receipts (ADRs) were also down in early premarket trading.
CMC Markets analyst Michael Hewson said the rise in imports was a sign that domestic demand may be returning, but warned the slump in exports was more concerning.
He added it is a “worrying portend that global demand remains weak, and unlikely to pick up soon.”
Separately, the International Monetary Fund upgraded its forecast for China’s growth, citing the economy’s recent performance and measures to support its struggling property market.
The IMF now expects China’s gross domestic product to grow 5.4% in 2023, up from its previous forecast of 5%. In 2024 it sees growth of 4.6%, up from its earlier 4.2% forecast.
But that still wasn’t enough to lift Chinese stocks Tuesday.
Write to Callum Keown at callum.keown@barrons.com
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