This little article about some of the policy announcements behind the last couple days' surge in Chinese stocks is well worth a read:
http://www.minyanville.com/special-features/daily-recap/articles/china-pboc-economy-stocks-market-shanghai/3/30/2015/id/56011
The key pieces of information:
"PBoC governor Zhou Xiaochuan said the bank stands ready to cut interest rates and bank reserve requirements to fight deflationary risks."
"Additionally, down payment requirements for second homes were lowered, and sellers of homes will now be exempt from a 5.6% transaction tax on properties held longer than two years. These measures are aimed at supporting the Chinese housing market."
So basically, with the economy slowing down and a speculative bubble in housing and construction at risk of bursting, the response is to encourage more speculation by reducing the financial requirements for banks to lend and home buyers to borrow.
America tried this 10 years ago. Spoiler alert: It did not end well.
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