SHANGHAI: China's Commerce Ministry said that strong exports in September were normal but it will monitor flows to Hong Kong, appearing to respond to suspicions that Chinese currency speculators have returned to manipulating trade invoices to bet on a rising yuan.
Beijing has struggled to prevent currency speculators from using simulated trade between Hong Kong and bonded customs zones using metals or lightweight items such integrated circuits to get more yuan on hand, circumventing controls on capital flows.
Such flows have been repeatedly blamed for producing mysterious spikes in exports even while trade with other Asian neighbors has fallen.
The yuan has been on a steady rally in recent weeks. It opened at its highest level since March on Thursday morning.
The ministry also said it expects China's foreign direct inflows to remain stable this year. China's net Jan-Sept FDI declined for a third consecutive month in September.
It said it expects retail sales to grow at over 12 pct year on year.
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