China's acceleration of exports and slowdown of imports in November left the country with its largest trade surplus in more than four years.

The improvement of overseas demand increased China's chances of securing an 8 percent trade growth target this year. It also gave the new leadership more room to advance reforms and ensure that markets play a decisive role in the economy.

But experts cautioned that the inflow of "hot money" has been disguised as trade payments.

November exports increased 12.7 percent year-on-year to $202.21 billion, while imports stood at $168.4 billion, up 5.3 percent year-on-year, the slowest rise in imports since July, the General Administration of Customs said on Sunday.

Overall trade in the first 11 months of this year rose 7.7 percent year-on-year to $3.77 trillion, slightly lower than the government's 8 percent growth target set earlier this year.

The trade surplus in November, $33.8 billion, was the highest since 2009, when the government launched a large-scale stimulus package.

The country's overall trade gains in the period from January to November this year reached $234.15 billion, more than the total value for last year.

"November's export growth is partially owing to the recovery in developed economies and the seasonal demand surge through festivals such as Christmas," said Wang Jun, an expert at the China Center for International Economic Exchanges.

"But it's very likely that speculative funds, or hot money, flowed into China chasing the renminbi appreciation."

According to Chen Hufei, a researcher at the Shanghai-based Bank of Communications Ltd, "The export surge in November was more possibly driven by the inflow of hot money speculating on the difference in interest rates at home and abroad as well as the continuous appreciation of the renminbi."

[ Back ]