China's Foreign Trade Grows 3.6% in First 10 Months; MSCI China Index Adjustments Announced

Deep News11-07

**Key Highlights** China's foreign trade maintained steady growth in the first 10 months of 2025, with total imports and exports reaching RMB 37.31 trillion, up 3.6% year-on-year. Exports rose 6.2% to RMB 22.12 trillion, while imports remained flat at RMB 15.19 trillion. October saw a marginal 0.1% increase in trade, with exports dipping 0.8% and imports growing 1.4% for the fifth consecutive month.

**Trade Breakdown** - **Trade Partners**: ASEAN (+9.1%) and the EU (+4.9%) led growth, while trade with the U.S. fell 15.9%. - **Sectors**: General trade (+2.3%) and processing trade (+6.5%) expanded, with private enterprises (+7.2%) outperforming state-owned firms (-8.1%). - **Exports**: Electronics (60.7% share) grew 8.7%, led by integrated circuits (+24.7%) and autos (+14.3%). Labor-intensive products declined 3%. - **Imports**: Bulk commodity prices dropped (iron ore -10.7%, crude oil -12.1%), while electronics imports rose 5.5%.

**MSCI China Index Rebalance** MSCI added 26 stocks (17 A-shares including **Qianli Technology**, **Changchuan Technology**, and 9 H-shares like **Zijin Mining International**) and removed 20 (16 A-shares such as **China Everbright Bank**). Changes take effect November 24, 2025.

**Market Snapshot** - **Indices**: Shanghai Composite gained 1.08%; power equipment led sectors (+4.98%). - **Global Context**: U.S. job cuts surged 175% YoY in October, hitting a 22-year high for the month.

**Investment Themes** 1. **Tech**: AI, semiconductors, and robotics favored amid policy support. 2. **Non-Bank Finance**: Brokers and insurers to benefit from market recovery. 3. **Metals**: Gold demand resilient; copper faces supply constraints. 4. **Energy Storage**: Policy-driven growth potential. 5. **Machinery**: Post-rate-cut manufacturing rebound to lift heavy equipment. 6. **Domestic Demand**: Consumer spending poised for recovery.

**Risks**: Policy shifts, economic volatility, and market fluctuations.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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