Exchange traded funds that invest in Chinese stocks fell Tuesday after China said third-quarter GDP rose 9.1% from the year-ago period. The economy grew at the slowest pace in over two years.

“GDP growth was surprising for the market on the downside,” said Stephen Green, economist at Standard Chartered, in a Reuters report. “There is clearer deceleration in the third quarter.”

The iShares FTSE/Xinhua China 25 Index Fund (NYSEArca: FXI) has stumbled early this week, hitting resistance near its 50-day moving average. [ETF Chart of the Day: Asia]

China’s export industry is having a tougher time in a slowing global economy, according to data released last week.

Export growth expanded to a less-than-expected 17.1% in September year-over-year, according to Bloomberg News. The trade surplus was $14.51, the lowest level since May.

Consequently, the diminished export numbers may signal the Chinese government to restrain the appreciation in the yuan currency and halt additional interest rate hikes. [Chinese Yuan ETFs Improve; PBOC Raises Currency Peg]

“Although Washington is ramping up the pressure on Beijing to move faster on the currency, Chinese officials will be able to cite today’s data as evidence that exporters are already feeling the pinch,” Brian Jackson, a strategist with Royal Bank of Canada.

However, problems in the developed economies may persist and continue to hurt exporting economies.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.