When I saw 'collapse in exports in February', it was the same story in January too ... no smoothing the two months this lunar new year!

But, as I said before ... everyone says the data is fictional, so logically there is nothing to worry about.

But putting that aside, Reuters have collated a few analyst responses, any bolding for emphasis is mine

CAPITAL SECURITIES IN BEIJING

"Yes its true that the Feburarys data look worse than the January but it does not indicate the economy is worsening. It is just a seasonal change. First the Lunar New Year holidays took up half of the month when businesses stopped working. Also the Feb trade data for China's major trading partners are weak as well.

Yes the Feb data came as a shock to the market but I believe the market will come around and understand the weakness in the data does not equal to the slowing of the economy. But, sure, the market will need some time.

"We normally get worried when there's a worsening in trade data for three consecutive months and also when this occurs in regular months like May to October."

Sounds to me like this guy's at Cap Securities phone maybe got hacked by the government ....

Anyway, more:

HWABAO TRUST IN SHANGHAI

"China will face a more challenging situation in trade this year than 2015. Both imports and exports in February fell more than our expectations.

Exports were largely dragged by a weak global demand from both developed and emerging countries."

ASIA COMMERZBANK AG SINGAPORE

"Notably, the trade data across North Asia came in quite disappointing in Jan-Feb , which will add downward pressure on North Asian currencies.

, which will add downward pressure on North Asian currencies. "China's exports declined the most since May 2009, suggesting that the overly strong CNY exchange rate has become an obstacle for the external sector. In the meantime, the sharp drop in imports also shatters the hope that China is rolling out a stimulus package that would boost the demand for commodities .

In the meantime, the . "That said, the recent rally in bulk commodities, led by iron ore, might be only short-lived. In addition, China trade surplus narrowed to USD32.6bn in Feb from USD63.3bn in the prior month.

"In general, the sluggish trade figures hint that further weakness in CNY might be inevitable. While the central bank could continue to sell its FX reserves to stabilize the currency and safeguard the financial system, China's trade competitiveness will be eroded eventually."

GUODOU SECURITIES BEIJING

"February's trade data is really poor and that will exert depreciation pressure on the yuan.

However, the recent lacklustre performance of the U.S. dollar in global markets, together with the Chinese central bank's determination to keep the yuan relatively stable for now, means that the yuan will not weaken sharply in the near term.

"More uncertainties lie in the medium term."













