FINWIRES · TerminalLIVE
FINWIRES

China Trade Surplus Narrows to $112.5 Billion in July

By
China Trade Surplus Narrows to $112.5 Billion in July

China's trade surplus narrowed to $112.5 billion in July from $125.62 billion in June, according to data from the General Administration of Customs released Friday.

The reading was higher than the consensus forecast of $108.6 billion tracked by Investing.com. On a year-over-year basis, China's trade surplus widened from $97.7 billion in July 2025.

Exports rose 23.9% year over year to $397.9 billion, also beating the 22.2% consensus growth forecast, according to Investing.com.

BofA Global Research expects higher prices to help prop up exports of integrated circuits and automatic data processing equipment. Auto exports are also seen to have helped contribute to the growth, the bank's research unit said in a note to clients.

Meanwhile, imports increased 27.5% year over year to $285.4 billion, missing the Investing.com consensus forecast of 27.9%. BofA predicted a 38% rise in imports during the month. Still, the bank attributed the sustained increase to technology imports from South Korea.

Total export and import value reached $683.2 billion during the month, up 25.3% from a year earlier.

For the first seven months of 2026, China's trade surplus rose 1% to $687.5 billion. ING Think's Greater China Chief Economist Lynn Song said this marks the first time since February that year-to-date trade surplus is in positive year-over-year growth.

Related Articles

OCBC's Quarterly Profit Jumps 22% as Fee, Trading Income Hit Records
US Markets

OCBC's Quarterly Profit Jumps 22% as Fee, Trading Income Hit Records

Oversea-Chinese Banking Corp. (SGX:O39) posted a 22% year-over-year increase in second-quarter net profit, boosted by record fee and trading income that more than offset a drop in net interest income.Net profit climbed to SG$2.22 billion from SG$1.82 billion a year earlier, with earnings per share rising to SG$1.96 from SG$1.60, the Singaporean lender said in bourse filings on Friday.Net interest income fell 1% year over year to SG$2.26 billion as net interest margin narrowed 22 basis points to 1.70% in a lower interest rate environment. However, the decline was offset by a 12% growth in average assets.Non-interest income jumped 51% to SG$1.91 billion, driven by an 85% growth in trading income to a record SG$695 million, while fee income rose 28% to a record SG$739 million. Insurance income grew 68% year over year to SG$382 million.For the first half of 2026, attributable net profit rose 13% year over year to a record SG$4.19 billion, with annualized earnings per share growing to SG$1.86 from SG$1.64.Total income for the first half grew 11% to SG$8 billion, with non-interest income surging 36% to a record SG$3.51 billion, accounting for nearly 44% of total income.Net interest income in the first half fell 3% year over year to SG$4.49 billion due to lower interest rates. Net interest margin shrank 25 basis points to 1.73%.The board declared an interim dividend of SG$0.47 per share, up 15% from SG$0.41 a year earlier, representing a payout ratio of 50%.OCBC reaffirmed that it remains committed to completing its previously announced SG$2.5 billion capital return by fiscal year 2026."Looking ahead, global conditions remain uncertain amid geopolitical tensions and elevated inflation risks. Much of the near-term outlook will depend on the easing of Asia's energy crunch brought about by the war in the Middle East. Meanwhile, AI and related technology sectors continue to register strong growth," said Group CEO Tan Teck Long.

SGX:O39
UOB's Quarterly Net Profit Rises 10% as Wealth Management Fees Hit Record
US Markets

UOB's Quarterly Net Profit Rises 10% as Wealth Management Fees Hit Record

United Overseas Bank (SGX:U11) reported a 10% year-over-year increase in second-quarter net profit, boosted by record wealth management fees that offset softer loan-related fees from capital market activities.Net profit climbed to SG$1.48 billion from SG$1.34 billion a year earlier, the Singaporean lender said in bourse filings on Friday.Net interest income fell 2% year over year to SG$2.3 billion as net interest margin narrowed 8 basis points from the previous quarter to 1.74% due to lower asset yields.Net fee income rose 5% to SG$665 million as wealth management fees rose to a record high, with clients converting more deposits into invested assets. In the first half, high-net-worth assets under management expanded 7% to SG$204 billion.Attributable net profit in the first half rose 3% year over year to SG$2.92 billion, with earnings per share growing to SG$3.45 from SG$3.32.Net interest income in the first half edged down 3% to SG$4.62 billion, while net fee income slipped 2% to SG$1.3 billion.Credit costs stayed within guidance at 28 basis points for the second quarter, with total allowances of SG$211 million, up 4%, reflecting the downgrade of a closely monitored real estate account in Greater China, UOB said.The lender's non-performing loan ratio stood at 1.6% at the end of June, up from 1.5% from the previous quarter.The board declared an interim dividend of SG$0.88 per share for the first half, up from SG$0.85 a year earlier. The dividend is payable on Aug. 28."Our results reflect the resilience of our diversified franchise, and the momentum building across our key ASEAN markets. Wealth management reached new highs, while transaction banking benefited from healthy customer activity across the region," said UOB Deputy Chairman and CEO Wee Ee Cheong.

SGX:U11
Airbnb Second-Quarter Results Beat Expectations as FIFA World Cup Fuels Demand
US Markets

Airbnb Second-Quarter Results Beat Expectations as FIFA World Cup Fuels Demand

Airbnb's (ABNB) second-quarter results topped Wall Street's estimates amid strong demand fueled by the FIFA World Cup.Earnings per share rose to $1.37 from $1.03 a year earlier, compared with the FactSet-polled consensus of $1.26. Revenue increased 17% year-over-year to $3.61 billion, above the Street's $3.58 billion view.Airbnb was an official tournament supporter for the FIFA World Cup 2026, which began in June and ended last month."Airbnb hosted millions of guest arrivals during the tournament, including many first-time users," the vacation rental company said in a shareholder letter. "More than 150,000 homes across host cities were listed on Airbnb for the first time."Gross booking value, which includes host earnings, service and cleaning fees and taxes, advanced 16% annually to $27.2 billion. Analysts expected $26.45 billion.Nights and seats booked grew 10% to 148.3 million, compared with the Street's 145.8 million view. The metric represents the total number of nights booked for stays and seats booked for services and experiences, net of cancellations and alterations.Shares soared 8.5% in after-hours trade. The stock is up about 12% this year through Thursday's close.Wedbush Securities expected a "constructive" setup for Airbnb heading into the results. The company's diversification is directionally right despite slower-than-expected adoption of experiences, the brokerage said in a note late last month.For the third quarter, Airbnb projects revenue of $4.69 billion to $4.77 billion, reflecting annual growth of 15% to 17%. The consensus is for $4.61 billion. The company expects gross booking value to rise in the mid-teens, compared with the Street's estimate of 11% growth.Airbnb now expects its full-year revenue to rise at least by a mid-teen percentage, compared with its prior forecast of low-to-mid teens. Analysts polled by FactSet expect $13.96 billion, implying an annual rise of 14%."We're pleased with the results we've delivered in the first half of 2026, and are excited about the continued traction from our product innovation and strong demand on our platform across all regions that is driving momentum in the second half of 2026," Airbnb said.

$ABNB