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POSITIVE SIGNS IN CHINA DESPITE TRADE FALL

Chinese exports and imports continued to fall in May but investment surged to record highs in the world's third largest economy as the government pumped money into new infrastructure projects to boost flagging growth.

Exports fell 26.4 per cent from a year earlier, a steeper drop than the 22.6 per cent fall in April and the seventh month of year on year decline.

Imports fell 25.2 per cent, after a 23 per cent drop the previous month, but economists said imports and exports had stabilised and were basically flat if measured on a monthly, seasonally-adjusted basis.

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