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 losses in stocks, outflows from bonds, credit defaults and a weaker currency.

The muted reaction to China’s fiscal stimulus plans and a surprise interest-rate cut last week exemplifies a trend that’s been intensifying in recent months: Xi Jinping’s government is increasingly powerless when it comes to reviving investor spirits.