China market is 70-80% retail mum and dad investors, vast majority of those are uneducated and inexperienced when it comes to investing and simply bought when government last year said by stocks. They invest on news and rumours over company financials and earnings.
Sentiment has changed within that 80% pump all the billions into the market they want but there is nothing the Government can do to change that sentiment until the market finds it's real value in relation to company earnings and the Chinese economy.
It's been a high margin bubble waiting to burst for months which I highlighted back in about May. China market is also fairly young and immature along with those trying to prop it up. Messages coming from government and securities regulators are inconsistent and only cause negative sentiment to increase.
