What Is China Hiding?

From Forex Live:

Dow Jones reports that China's government will increase stock market purchases. Earlier, Reuters reported that China had already spent the equivalent of 515 billion pounds (!) to boost stocks.
Those numbers are estimates because the true figures aren't available. One of the reasons the market dropped 8.5% today was a report that the China Securities Finance Corp was considering cutting back buying.
All the headlines surrounding China scream about 'meltdowns' but the chart of the last year strikes me as entirely 'normal'. That kind of loss in a day is certainly traumatic but there are very few markets in history that can rally as quickly as China without a deep correction at some point.
          Despite the volatility, the Shanghai Composite is still up 81% over the past 12 months.
The first question is: Why hit the panic button? Let it fall and then help pick up the pieces.
The second is: If they're panicking about a little stock market dip, what else are they hiding?
That second question is much more worrisome than a violent dip in shares. 

 The author asks good questions.

Yet the answer seems to elude him.

In our experience when government urges someone to do something and creates special programs to support it, the wise thing to do is the complete opposite and run the other direction.

Despite their size and influence, government seems to have an uncanny knack for creating financial and economic havoc particularly when they tinker with free markets.

Therefore, watch the price action of gold these next few days to see if the market begins to panic out of stocks and into safe havens.