China’s Milestone Moment for Markets Is Now a Distant Memory

  • Second-quarter optimism has faded as investor sentiment sours
  • Capital markets have seen six months of foreign outflows

Xi Jinping’s government is increasingly powerless when it comes to reviving investor spirits.

Photographer: Justin Chin/Bloomberg
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Sentiment toward China’s frayed financial markets looks to be on its last legs with rebounds that don’t last, inflows that don’t stick and vows of more action from Beijing that keep falling flat.

For fund managers, that means facing the prospect of more lossesBloomberg Terminal in stocks, outflows from bonds, credit defaultsBloomberg Terminal and a weakerBloomberg Terminal currency.