Nothing appeared more serious than the market-wide setback for Chinese stocks as the Shanghai Composite Index fell to 2000 and may, as some analysts fear, fall further to 1900.

There are analysts who recommend buying despite the short-term trends because they think the government feels obliged to interfere with the market and it has plenty of ammunition. Even a small increase in a holding by a national financial investment company, pension or housing fund would help give a boost to the general index - now it is already so low.

But the interesting thing is why does a sensible government have to act so immediately to protect the market whenever some companies feel some pain?