Trade Slump Eases in China, Boosting Recovery Hopes Amid Lingering Challenges

China's trade slump showed signs of easing as exports fell less than forecast in September, indicating a gradual recovery. However, challenges persist as deflationary pressures and a long-running property crisis continue to hinder economic growth. While policy support measures have stabilized certain sectors, uncertainties over employment, household income, and weak confidence among private firms pose risks to a durable rebound. China's credit growth also showed signs of steadying, with new bank lending increasing in September. Economists caution that it is too early to determine the trajectory of domestic demand, and further policy support may be necessary.