The country's trade surplus shrank in November to 22.9 billion dollars, customs authorities said, but the still-hefty number will add to the already large volume of money washing around the economy and fuel inflation pressures.

The surplus stood at 27.15 billion dollars in October.

Exports increased 34.9 percent in November from a year earlier to 153.3 billion dollars, while imports rose 37.7 percent to 130.4 billion dollars, according to the data.

The increases trounced analyst forecasts for 22.4 percent growth, while customs authorities said the values were record highs for a single month.

Investors responded positively to the stronger-than-expected figures, pushing the Shanghai Composite Index up 1.07 percent to 2,841.04.

Analysts said the data showed the Chinese economy remained in good shape despite sluggish growth in the United States and the worsening European debt crisis -- and supported calls for higher rates and a stronger yuan.

"It is increasingly difficult to argue that China's export sector can not tolerate some currency appreciation, a move which would also help Beijing get price pressures under control," said Brian Jackson of Royal Bank of Canada.

"The strength of domestic demand also suggests that rate hikes are needed to keep China's economy on an even keel."

The data come ahead of the release of key economic figures for November on Saturday, including inflation, and as top leaders meet for the annual Central Economic Work Conference to discuss policies for the next year.

Inflation data is expected to show consumer prices rose 4.7 percent in November, Dow Jones Newswires said, which would be the fastest pace in more than two years and well above the official full-year target of three percent.

The figures also precede two days of key trade talks between China and the United States in Washington next week, at which Beijing is likely to face renewed calls to allow its currency to rise faster against the dollar.

Critics charge the yuan is undervalued by as much as 40 percent, making Chinese exports artificially cheap.

China pledged in June to loosen its grip on the currency. Since that time, the yuan has appreciated less than three percent against the greenback.

But Washington's demands for a stronger yuan have been undermined by the Federal Reserve's decision last month to pump 600 billion dollars into the economy.

The move has been blamed for triggering a flood of capital into developing economies including China, pushing up the value of local currencies and fuelling inflation.

Citigroup economist Ken Peng said the robust trade figures, coupled with rising property prices and a pick up in manufacturing, showed the economy was "still very strong" despite Beijing's efforts to slow the pace of growth.

"In the coming couple of weeks, we could be getting a reserve requirement hike and a rate hike," Peng told AFP.

Property prices in 70 major cities recorded their third straight month-on-month rise in November, official data showed Friday, defying Beijing's attempts to cool the red-hot market and avoid a damaging bubble.

Prices were up 0.3 percent last month from October and 7.7 percent higher than a year ago.

Manufacturing activity also accelerated in November, according to the results of purchasing manager surveys released last week.

The value of new loans issued by China's banks fell in November from October, official data showed Friday, but it was still well above forecasts as Beijing struggled to stem a flood of liquidity.

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