China's Economic Recovery Raises Alarms in Markets.

Financial markets have been raising red flags recently about China's economy, but analysts said Wall Street is missing the big picture. Growth in the world's second largest economy accelerated to 4.5% in the first quarter from 2.9% in the fourth quarter following the relaxation of COVID restrictions late last year. However, more recent data have pointed to slowing growth in retail sales as well as drops in home sales, industrial production and fixed-asset investment. Despite this, analysts believe Wall Street is being too short-sighted and not looking long term, with heightened anticipations due to China's response to the 2008 financial crisis.