China’s Positive Trade Reports To Buoy Economy

China, the second largest economy in the world, was facing a threat of a serious economic slowdown but its September trade reports could help buoy the country's economy.

China's exports increased 15.3 percent in September on a year-over-year basis, which is also its biggest gain since February 2013. Imports also improved 7 percent. Both exports and imports beat expert predictions.

Bloomberg's analysts pegged China's September exports at 12 percent and expected a 2 percent decline in imports, but the market managed to stay afloat on account of "external demand" for goods like iPhone 6 and reshipment of goods.

"The strength in imports was a surprise, and suggests that the sharp growth deceleration in August has been arrested. Imports registered strong growth from commodity intensive countries, with shipments from Asean, Russia and South Africa up strongly," economists at Barclays, wrote in a note according to CNBC.

"Today's data add more weight to our view that growth will recover sequentially in the fourth quarter," they added.

China's property market slowdown has been a much-watched sector. As home prices continue to tumble in major cities of the People's Republic, experts have feared a market crash that could trigger repercussions in the global economy.

The current results are encouraging. Analysts expect more confidence in the market as demand due to the festive season will continue to improve. Also, as the U.S. economy recovers, growth is expected to continue in the next few months, Reuters reports.

However, many think it is only a short lived improvement and it is too early to pass judgement on China's economic health right now and feel that the government needs to keep a stringent watch over the real estate market of the country.

"An ongoing slowdown in domestic demand would be likely to add to pressures for further stimulus measures - and, in turn, policy-makers' response will be a key indicator for the medium-term economic direction," Fitch Ratings was quoted by Reuters.

"Fitch continues to believe that the authorities' strategy is to allow for a gradual correction in the housing market by supporting consumer demand through targeted measures, for example to boost mortgage lending."