David Fuller's view

Everyone is nervous about China, understandably given the gyrations of its markets this year.  However, mainland China’s stock markets are actively managed by its government.  Recently, it has been reining in the Shanghai A-Shares bubble which it helped to create with its own version of QE. 

Now China is also buying once again, focussing mainly on its banking sector as Eoin has pointed out.  A performing banking sector is generally favourable for an economy and its broader stock market.  China’s government is unlikely to support Hong Kong Indices, at least not directly, but many shares listed on the mainland also trade more cheaply in Hong Kong, particularly the HK China Enterprises (H-Shares) Index (p/e 8.64 & yield 3.45%) according to Bloomberg.  

I commenced buying this H-Shares Index near current levels earlier in the year, before trading them out at higher levels.  I bought a little more on the way down and increased this position today, paying 11597 for the July contract, including all spread-bet dealing costs.