Figures from HSBC have shown China's export growth fell to a decade low of -17.5% year-on-year in January, which was weaker than market expectations.

Following two consecutive months of negative readings in November and December, the tumbling export growth was explained by collapsing external demand from G3 countries and a reverse trend of export growth from emerging markets, as well as the interruption of the Spring Festival holidays.

The Festival meant five less working days, which it claimed could have reduced exports by at least 5%.

Import growth was down even more than exports, falling to a record low of -43.1% year-on-year in January, reflecting weakness in both external and domestic demand, as well as declining commodity prices. Imports of intermediate goods and equipment for processing trade, which account for more than 30% of total imports in China, fell 50% year-on-year in January - greater than the 30% drop in December - suggesting export weakness will continue in the coming quarters as the processing trade accounts for 50% of exports.