China's exports and imports return to erowth, signalling demand recovery

China's exports and imports returned to growth in April after contracting in March, customs data showed on May 9, signalling an encouraging improvement in demand at home and overseas in a boost to a shaky economic recovery.

The data suggests a flurry of policy support measures over the past several months is gaining traction and helping to stabilise fragile investor and consumer confidence.

Shipments from China grew 1.5 per cent year on year in April, in line with the increase forecast in a Reuters poll of economists. They fell 7.5 per cent in March, which marked the first contraction since November.

Imports for April increased 8.4 per cent, beating an expected 4.8 per cent rise and reversing a 1.9 per cent fall in March.

"Exports have been the bright spot in China's economy so far this year. The weak domestic demand led to deflationary pressure, which boosts China's export competitiveness," said Pinpoint Asset Management chief economist Zhang Zhiwei.