The Chinese people’s low level of experience with stock markets is a big problem. They aren’t used to riding out “adjustments”. Like most neophytes, they end up selling at the lowest point due to panic.
Lead story on Drudge at the moment: JACK MA STOCK SWEAT
Here’s the story when I click on the link:
Alibaba to JD.Com Plunge as Investors Flee From All Things China - http://www.bloomberg.com/news/articles/2015-07-07/china-slump-spreads-as-alibaba-sinks-adrs-approach-bear-market