Strong Chinese imports boost demand for mining shares

Data released this morning from China showed swelling imports in March as imports rose by 14.1 per cent, smashing expectations of growth of just 5.2 per cent. This news has been great for UK based miners such as Vedanta, ENRC, Rio Tinto and Aggreko.

Haibin Zhu, chief China economist at JP Morgan in Hong Kong, said the surge in imports in March could help dispel a major concern over the strength of the domestic demand cycle prompted by weakness of import data in previous months.

"The stronger than expected import growth for March suggest this cycle is probably coming to a turning point," Zhu told Reuters. "If domestic demand turns out to be stronger than expected, it's definitely positive for the economic outlook."

(Reuters)