Better-than-expected trade statistics from the Customs Administration were boosted by improving demand for the country's goods in major markets and adding to evidence that the world's second-largest economy may have avoided a sharp slowdown. 

Market expectations in a Reuters poll were of a rise of six per cent in exports, an 11.3 per cent rise in imports and a trade surplus of $20 billion.

"China's August trade sustained the upward trend seen since July, in line with accelerating growth momentum and improving market sentiment, pointing to an upside bias in Q3 GDP growth," ANZ Economists Liu Li-Gang and Zhou Hao said.

The trade figures showed exports of electronics, textiles and machinery rose in the month. Exports to ASEAN nations jumped 30.8 per cent in August, outpacing July's gains, while exports to the US rose 6.1 per cent, faster than July's 5.3 per cent gains. Exports to the European Union rose 2.5 per cent, little changed from July's gain, while exports to Japan contracted for the seventh straight month.

Yet, a sustained recovery is still not certain. Imports were below expectations, a reflection of caution among manufacturers about future demand. "There is no doubt that the external demand is improving, especially in developed countries," said Industrial Bank chief economist Lu Zhengwei.

"But we are still not optimistic about the outlook in H2. Emerging market economies are struggling even though advanced economies are on the mend. Many Chinese companies, such as steel firms, are exporting at losses."