Foreign investors in China seek new catalysts as stock rally fizzles

HONG KONG — Foreign investors reverted into net sellers of Chinese stocks in June, amid fading enthusiasm over the government’s rescue package for the struggling property sector.

Some players are still holding out hope for a second rally, but they warn that this will depend on the effective execution of existing policies and signs of stronger support at the Communist Party’s long-awaited third plenum in July — a key session that has a history of altering China’s economic course.