Welcome to Source on the Market.

I'm Robin Xing, Morgan Stanley's Chief China Economist.

Along with my colleagues, bringing you a variety of perspectives.

I will be talking about China's growth hiccup in the second quarter in a year of recovery.

His Wednesday, June 23 at 8 p.m. in Hong Kong.

For the last few months, my strategist colleagues have noted that markets have placed a lot of

focus on the economic recovery in the US, but as the second largest economy in the world,

China promises to be the other key driver for global growth.

China's recovery since last year has been strong, but quite uneven,

with its manufacturing output recovered to above the potential trajectory,

way ahead of its consumption.

That means consumption recovery has not reached the end of the wrong way.

However, for the second quarter this year,

China's growth is tracking weaker than we initially expected.

This has prompted some to ask if China's recovery during momentum.

Our answer at Morgan Stanley research is no,

so let me dive into this recovery debate.

While there has been a brief hiccup in consumption recovery in recent months,

the short answer for that is good sales are normalizing

after pent-up demand during pandemic on big tickets items like cars and smartphones and home

electronics have been satisfied, which is very natural,

but it's the services recovery which came in slower than expected,

...