What I know is that china's market is vastly overbought. Americas analysts have been reccomending China for years, kind of like America before the 07 crash. There is very little value in China. The drilled for too many commodities, are totally dependent on oil, and don't have the liquidity like people think.
They are poor and nothing has changed. So yes the communist's issued an order too try and stop the bleeding. It didn't work. Most of China's companies are emerging growth stocks. Meaning the generate very little cash and revenue. They are projected in many sectors at 100 to 200 times average and showing no growth. They are limited in requirements so there books are poor. China is shady too invest in and people are leaving for safer investments.
A lot of money has left China. It is here in America, Europe, Japan, and heading to india. China is dependent on America and the stronger dollar is hurting importers. This hurts in a number of ways. Why, because it forces them to weaken thier currency. A weaker currency can help them print there way out of the mess they caused themselves but it causes a lot of other issues for China and doesn't guarantee exports will recover. The Chinese now they are being made to look weak and have been his hard. A weaker currency means better gold, silver, and platinum prices. Also better oil prices. It means it will make PC's and iphones more expensive as well. All things the Chinese govt. doesnt want to happen because this will hurt China. The effect, 30 % decline.
So the new margin requirement, which are really a lot of old rules finally being enforced caused the early sell off. But the fact that the currency isn't getting weaker has cost China and benefitted Japan and India as two major exporters and the Euro. So now China is selling off for weaker exports. So the Chinese govt. tried to stop this buy saying no more selling, what happened buying stopped too. People don't want to buy something they cant sell. So companies prices are falling even quicker and equity is being lost because investors dont want all the additional risk.
So China is trying some things but in the end china will need to print print print. Just like the Euro and Japanese and Russians are doing. Or the will all drive it under. China needs oil and gold to survive. The can buy it cheap now, but its going to be oil and gold or exports and they need all of the above. The government screwed up and is trying to cover its tracks and failing.