The data from the Hong Kong Government Information Center tallied imports in the territory from the mainland at HK$183.7 billion ($23.7 billion) in December. On Jan. 13, the Beijing-based Customs General Administration announced December trade data showing shipments to Hong Kong had surged 10.8 percent from a year earlier to $46 billion. The discrepancy suggests China’s trade recovery in December was inflated by fake invoicing to skirt capital controls and profit from the difference between the yuan’s exchange rates in on-shore and off-shore currency markets. In a twist to fake invoicing in 2013, when the government said export and import figures were overstated due to the phony trade to bring money into the mainland, the refreshed practice has more to do with capital flight out of the country. "The divergence of trade data indicates a potential use of the trade channel for financial arbitrages," said Raymond Yeung, a Hong Kong-based senior economist at Australia & New Zealand Banking Group Ltd. Given how the spread between the onshore and offshore yuan widened in December, exporters and importers "may move funds across the border through trading with offshore affiliates. By blowing up trade figures, traders may potentially receive a larger forex quota to move their funds abroad." After China’s trade data were released, economists including Iris Pang at Natixis SA and Larry Hu at Macquarie Securities Ltd. flagged the possibility it reflected fake invoicing. While China’s government has strict rules on importing capital, those seeking to exploit yuan moves can evade limits by disguising money inflows as payment for goods exported to foreign countries or territories, especially Hong Kong. Past trade mismatches-- including in September 2014 -- tended to coincide with appreciation of China’s currency.