China’s exports to emerging markets surge, UBS warns of disinflationary risks

Published 07/07/2025, 13:02
China’s exports to emerging markets surge, UBS warns of disinflationary risks

Investing.com - UBS has identified what it calls a "second China shock" to global trade, highlighting a significant surge in Chinese exports particularly to emerging markets. For investors tracking these crucial market shifts, InvestingPro offers comprehensive emerging markets analysis tools and real-time trade flow indicators.

In a Global Economics and Strategy note providing a multi-asset analysis, UBS observed that China’s export growth extends "well beyond transshipping" activities, indicating a fundamental shift in trade patterns.

The investment bank pointed to a concerning disconnect in China’s economic indicators, noting that while listed company capital expenditure is falling, credit growth to manufacturing continues to run at approximately twice pre-Covid rates.

This divergence between declining corporate investment and expanding manufacturing credit creates potential economic imbalances, according to the UBS analysis.

UBS warned that these conditions pose "disinflationary risks to EM CPI and manufacturing margins," suggesting emerging markets could face both consumer price pressures and manufacturing profitability challenges as a result of China’s export surge.

In other recent news, Safe and Green Development Corporation (SGD) has announced the completion of its acquisition of Resource Group US Holdings LLC, a move that is expected to enhance its revenue-generating capabilities. This acquisition aligns with SGD’s strategy to expand its portfolio of environmentally friendly soil solutions and is seen as a significant step toward increasing revenues and shareholder value. Following this acquisition, SGD has appointed three new board members: Bjarne Borg, James D. Burnham, and Anthony M. Cialone, who bring extensive experience in real estate, mergers, and strategic planning. Additionally, SGD’s subsidiary, Resource Group US Holdings LLC, is set to expand into the premium potting media and soil substrates market, leveraging advanced milling technology.

The subsidiary aims to market these products under the "Renewable Earth" brand, with potential pricing reaching up to five times that of traditional compost offerings. CEO David Villarreal emphasized the company’s commitment to its strategic goals, noting projected revenue growth from $16 million in 2023 to approximately $25 million in 2025. Despite recent stock price volatility, Villarreal assured shareholders that the company’s operational plans remain unchanged. The completion of Resource Group’s audit and standard closing procedures are the remaining steps for finalizing the acquisition. Investors are advised to review the forthcoming proxy statement filed with the SEC for detailed transaction information.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.