China’s benchmark stock index is set to erase all of the gains it made since a key political meeting was held in late July as the economy struggles to gain momentum and optimism over stimulus wanes.

The CSI 300 Index fell 3.4% last week, almost wiping out all of the advance it had made following the pro-growth tone of the Politburo meeting on July 24. A gauge of mainland stocks listed in Hong Kong has fallen 5.2% this month, while the MSCI Asia Pacific Index has slipped 4.2%.

The post-Politburo rally has gone into reverse due to increasing signs recovery is losing traction, and concern that Beijing’s steps to counter the slowdown are too small and too slow. Investors have also soured on the nation’s outlook due to the troubled property sector, falling exports, deflation in both consumer and producer prices, and a slide in new yuan loans to the lowest in a decade.

“The significantly lower-than-expected aggregate financing may suggest tight lending conditions or a lack of demand, either of which does not bode well for economic growth,” said Marvin Chen, an equity strategist at Bloomberg Intelligence in Hong Kong. The data “may add to downside pressure” for China stocks on Monday, he said.

Overseas investors, who had snapped up onshore Chinese stocks for two weeks following the Politburo meeting, sold each day last week, withdrawing a net 25.5 billion yuan ($3.5 billion). That was the most for any week since October.