Hong Kong's exports to China crashed 23.1% in February

Following an impressive 22.9% gain in January.

According to Moody's Analytics, after narrowing sharply to HK$27.5 billion in January because of extra workdays in the lead-up to Lunar New Year festivities, the monthly trade shortfall widened to HK$34 billion in February. Factories shut for this year’s celebration in February, which caused exports and imports to decline sharply.

February’s merchandise trade deficit of HK$34 billion follows January’s HK$27.5 billion shortfall. This came in better than expected.

Exports declined sharply y/y in February, after January’s strong gain.

Here's more from Moody's Analytics:

By destination, exports to China—which account for more than half of the total—declined 23.1% y/y in February, after January’s 22.9% gain. Exports to the U.S. dropped 4.6% y/y in February, after January’s 0.9% decline. In Europe, shipments to Germany fell 8.7% y/y, while exports to the U.K. declined 4% y/y. Foreign sales to Japan fell 19.2% y/y in February, after January’s 9.5% rise.

Electronics exports, down 21.9% y/y in February, led the decline in exports. Imports dropped sharply y/y in February, following January’s fast rise. Imports from all destinations and all products dropped sharply y/y.