China's exports and imports makes unexpected growth in June

Limited upside is expected, though.

China’s exports continued to recover by growing 7.2% YoY in June (vs. 7.0% YoY in May), while imports rebounded by increasing 5.5% YoY in June (vs. -1.6% YoY in May).

According to a research note from CCB International, net exports contracted from US$35.9b in May to US$31.6b in June.

This was attributed to the improvement in exports in June to higher exports to developed markets and ASEAN countries.

Meanwhile,the rebound in imports in June was driven by an increase in imports of machine-tools, semiconductors, and electronic integrated circuits.

CCB International forecast that China’s exports will remain relatively stable, growing 6% YoY in July after factoring in the much higher comparison base in July 2013 and realizing US$28b in net exports in July.