China Earnings Pain Erodes Optimism Over Stock Market Rebound
- Benchmarks have fallen after a months-long rally through May
- Earnings estimates for onshore equity gauges fell most in Asia
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Investors in Chinese stocks are losing patience as a long-awaited earnings recovery fails to come through and a rally unravels.
Earnings estimates on key Chinese gauges have been slashed by the most in Asia this year as a deepening housing slump and sluggish retail sales hurt confidence. Stocks have lost momentum following a mid-May peak, with the MSCI China Index down more than 8%.