UPDATE 2-China exports blast past market forecast -sources

* Surprise export jump eases worries about euro debt crisis

* CPI, bank lending slightly stronger than expectations

* Official figures to be released Thursday and Friday
(Adds analysts’ comments, updates market reaction)

SHANGHAI/BEIJING, June 9 (BestGrowthStock) – Chinese exports in May
grew about 50 percent from a year earlier, sources said on
Wednesday, a figure that blew past expectations and fuelled a
rise in stock markets globally.

The key Chinese stock index (.SSEC: ), which had been in
negative territory, jumped 2.8 percent as the strong export
growth reassured investors who have been worried that the
European debt crisis would weigh on the global economy.

Exports, which are scheduled to be reported as part of
broader trade data on Thursday, had been expected to rise 32.0
percent year-on-year in May after recording a 30.5 percent pace
in April.

If confirmed, the surge in external demand would suggest
that the risk of a Chinese economic downturn is very small,
said Huang Lin, an economist with Soochow Securities in
Beijing.

“The risk of double-dip (in the world economy) is not as
big as many have feared and China’s economic growth this year
will be above 9 percent,” she said.

European shares extended initial gains, most Asian stock
markets clawed back the day’s losses, the euro edged up and oil
also gained after Reuters reported the export numbers.
[ID:nSGE65801R]

The surprisingly strong exports came alongside figures
showing that the domestic economy was performing in line with
relatively strong expectations, three sources said.

Chinese consumer prices in May rose 3.1 percent from a year
earlier, accelerating from 2.8 percent in April, a senior
government official told an investors’ conference on Wednesday
that was closed to media, according to the sources present at
the meeting.

The official also told the audience that new loans in May
reached 630 billion yuan ($92.2 billion), falling from 774
billion yuan in April.

MEETING FORECASTS

“The official unveiled those figures during the meeting,
but they’re basically in line with our forecasts,” one of the
sources said, speaking on the condition of anonymity because of
the sensitivity of publicly discussing data before it is
officially released.

Economists polled by Reuters expect annual CPI inflation to
reach 3.0 percent in May, new loans to stand at 600 billion
yuan and export growth to be around 32 percent. (ECONCN: )
[CN-POLL-ECI-LEN]

Consumer inflation and other activity data are due on
Friday. Money and lending figures could be published by the
central bank at any time.

Chinese economic indicators are often circulated widely in
markets and government circles ahead of their official release,
and are sometimes subject to last-minute revisions.

The deepening of the European debt crisis has become a
major concern in China, where the government and investors had
hoped that a decent recovery in external demand would make up
for the gradual withdrawal of stimulus measures at home.

Growth of exports to Europe, China’s largest trade partner,
could drop by as much as 7 percentage points in May, June and
the third quarter, Huo Jianguo, a senior commerce ministry
researcher, said last month.

But other analysts have said that these worries were
overblown, at least for now.

Huang of Soochow Securities noted that while shipments to
the European Union account for about one fifth of total Chinese
exports, those going to debt-troubled countries are a much
smaller share.

“China’s exports are expected to remain strong in the
second half of this year,” she said.

Money

(Reporting by Beijing and Shanghai Newsrooms; Writing by Jason
Subler and Simon Rabinovitch; Editing by Kazunori Takada)

UPDATE 2-China exports blast past market forecast -sources