Chinese trade surplus shrinks as imports surge

China's trade surplus shrank significantly in July, according to government figures released on Wednesday, as export growth eased and imports surged.

The country's trade balance fell to $84.65bn last month, down from $99.05bn in June and well below the $99bn expected by economists.

Exports were 7.0% higher than last July, with growth slowing from 8.6% the previous month and surprising analysts who expected an acceleration to 9.7%.

Meanwhile, imports jumped 7.2% year-on-year following a 2.3% annual decline the previous month, well ahead of the 3.5% increase expected.

"Overall, today's exports number suggest some weakness in the industrial production figures next week and could put China's 5% GDP target in doubt," said analysts at TD Securities.

"Thus, we expect China to engineer a weaker CNY in the coming months despite the recent carry unwind supporting CNY strength."