The great fall of the year-on-year growth speed of imports and exports, on the one hand, is influenced by last year's high base. Last May, the year-on-year value of imports and exports has risen respectively by 13% and 15%. On the other hand, as we mentioned in the last report, a series of measures to restrain the inflow of hot money published by State Administration of Foreign Exchange has come into effect. The gap between two different statistical calibers in Hong Kong and the Mainland has greatly shrunk. It can be seen that the arbitrage trade towards Hong Kong has been restrained and the false growth of trade has shrunk, which reflects the dissatisfaction of the real demand of foreign trade.
In terms of specific countries, the growing speed of exports to the major trade partners shows great fall or negative growth. The year-on-year value of exports to the U.S. has fallen by 1.6%, enlarging compared to April's 0.1 decreasing amplitude. The year-on-year value of exports to Europe Union has decreased by 9.7%, with decreasing amplitude enlarged by 3.3%. The exports to Japan has dropped by 5.7% year-on-year, with decreasing amplitude enlarged by 4.5%. In the former period, to growth speed of exports to Hong Kong and the Association of Southeast Asian Nations is strong, but influenced by the base and supervision in May, the growth speed has fallen greatly. Among them, the growth speed of exports to Hong Kong has dropped from April's 57.2% to 7.7%. The shrink gap between statistical caliber in Hong Kong and the Mainland shows the statistic of exports to Hong Kong has returned to normal. Only the growth speed of exports to a few regions, such as South Korea, India and South Africa, has improved compared to the former period.