Export oriented Chinese growth seems to shrug off equity crash and trade balance numbers

China's response to a correction in equity prices from over-bought levels was, at best, heavy-handed. That the authorities felt the need to respond tells us something about the concern caused by an investment and asset price bubble, which is the biggest policy challenge the authorities face in the transition from export-led economy fuelled by cheap labour, to a consumer and services-led economy.

China recorded a trade surplus of 465.36 USD Hundred Million in June of 2015 as reported by reported by the General Administration of Customs. China Trade Balance came in at $46.54B, below expectations ($55.7B) in June.

Chinese equities continue to extend their recovery today, raising hopes that measures taken by Beijing to prevent a full-blown market crash have worked, although renewed interest in leveraged bets has led to fresh regulatory crackdown on margin lending.

The Shanghai Composite Index gained 2.3% by midday, having bounced 18% from a four-month low hit last Thursday. The index is still down 23% from its June 15 peak.

But a sharp fall in equity prices will have less impact on growth in the short run than would be the case in, say, the US. We wouldn't rule out a return to calmer tines in Chinese equities - or even a strong rally - that could support Asian risk appetite.

But China's still set for slower growth and for a make-up of growth that is unfriendly for commodity prices and resource-exporting countries' currencies.