Buildings under construction in Beijing. Some economists say recent weakness in China data is temporary, due to an unusually hot summer building season. SHANGHAI—China’s financial markets are sending conflicting signals about the health of the world’s No. 2 economy, where a strengthening currency, buoyant stocks and soaring commodities contrast with the pessimism popular among the country’s bond investors. The country’s latest economic data have made the picture even murkier, with the pace of industrial output, retail and housing sales and investment growth all decelerating in July . Some economists, however, argue the weakness was temporary and due to an unusually hot summer that affected construction work. A closer look suggests bond investors’ cautious outlook may win out. That is because the recent rally in other asset classes has come partly thanks to policies designed to preserve financial stability ahead of a key Communist Party political meeting this fall, and […]