In recent weeks, a slew of blue-chip firms have pointed to a patchy recovery in the world's second largest economy, forcing some executives to warn of slower-than-expected growth.
Shehzad Qazi, chief operating officer of data and advisory firm China Beige Book, said many analysts on Wall Street had overestimated the pace of the country's recovery. Shares of the beauty giant, home to brands such as Clinique and Bobbi Brown, plunged more than 17% in New York last Wednesday. Although the company did better than expected in the quarter ended April, enjoying a strong rebound in traffic and"faster-than-expected recovery" in its second biggest market, investors were left unnerved.
Procter & Gamble, the world's largest consumer products group, said it was still waiting on"further recovery" as some Chinese consumers appeared to be wary about going out and returning to normal life.