The prolonged downturn in luxury spending in China is unlikely to reverse this year, with analysts and executives warning of deepening losses that have wiped nearly $200 billion off the sector’s value. Recent profit warnings from Burberry and Hugo Boss, along with a 27% drop in Richemont’s quarterly sales in China, Macau, and Hong Kong, highlight the weakness in China where middle-class shoppers are reducing big-ticket purchases. Bain consultancy reports China accounted for 16% of global luxury spending last year, but slow economic growth, a prolonged property slump, and job insecurity are hampering recovery. Hopes for a second-half rebound have been dashed, with China’s wealthiest favoring more discreet fashion, further spooking investors and leading to significant sector losses since March.