According to Jim Cramer, the Chinese communists are running the Shanghai composite through trial and error. They are inventing new techniques to manage stocks and will do what is necessary to stabilize the index.
On Monday, they tried circuit breakers, and that ended in error. Tuesday, they decided to put billions to work just so market didn't crash under its own weight.
They are doing whatever they want. Cramer wouldn't be surprised to see the Chinese government go to great lengths to extend the ban on selling large blocks, bar insiders from significant sales or even demand households only buy stocks, not sell.
While these tactics may sound ridiculous to some, Cramer thinks they could actually be possible under the rule of law in China.
"The rule is very simple — the Communist Party runs the show, and they will do whatever is necessary to keep the balls in the air, and do it longer than anyone here in the West believes possible," the "Mad Money" host said.