China Market rose 100% this year alone and then correct 50%. China changed the law early this year to allow peope to buy stocks they weren’t allowed to before, that was why the China stock market increased so much
"While the market's attention overnight was focused on China's crumbling manufacturing and service PMI, data which was already hinted in the flash PMI reports earlier in August, the real stunner came not from China but from South Korea, which last night reported an unprecedented 14.7% collapse in exports, far worse than the -5.9% consensus estimate, and more than 4 times worse than July's 3.4%."
you are correct
the change is largely a reversion to the trend line
China apparently has only 2% foreign investors, and the majority of those who hold stock are not experienced investors. When you take people living in a communist country, and allow them to accumulate some wealth, it's probably predictable that they will panic and sell off when they see that wealth diminishing in a big correction.