Just a few weeks ago, many investors in China’s stock markets were ready to give up and eager to sell. Then late last month, traders rushed in to make bullish bets after the government’s leaders announced a series of steps to stimulate China’s faltering economy.

In September, Beijing unveiled a raft of monetary stimulus packages, including forced interest rate cuts and lower down payments of homebuyers to boost the economy. Later, the southern city of Guangzhou lifted all home purchase restrictions, while both Shanghai and Shenzhen revealed plans to ease key buying curbs.

China's stock markets roared back from a week-long break and climbed to their highest levels in more than two years at the open, but lost steam after officials failed to inspire confidence in stimulus plans intended to turnaround a sputtering economy.