The Chinese periodically pumps money into the market to prop it up (then they try to drain it, mostly unsuccessfully). They also encourage patriotic investing by locking up stock sales at tech companies, for example. Finally, the small investors are mostly trying to catch waves from a few whales who have lots of inside information, where many of the whales are actually princelings who are our to make money on fooling the very numerous small investors. Not a healthy market at all.
That may be true but most of the price actions are merely noises. The cataclysmic ones show how mass hysteria can easily form and that is rather independent of the existence of manipulations. The problem is really that too much of capital allocation in China is still done through bank loans. And banks are not particularly good at spotting and adapting to new trends.
