There was a great deal of concern among economists and market participants earlier this year over China, or, more specifically, the then emerging slowdown in the Chinese economy. However, recent data indicates the slowdown has passed.
From the latest HSBC report:
The market dropped sharply in June, falling to ~1950 with an intra-day move down to 1850. However, prices have been moving steadily higher since then, crossing the 200 day EMA the week before last. Last week's large daily sell-off looks as must technical as anything else.