Year to date, PRC stock markets have rallied: Shanghai is up 33 %, and Shenzhen 45 %.
(For comparison: Taiwan is up 20 %. Hong Kong, Japan and Singapore are flat, and most European and American indices are down 5-10 %.)
From the low point in October 2008, the rally is even more impressive: Shanghai is up 42 %, Shenzhen 78 %.
On the other hand: Compared to early 2008, both indices are still down by more than half.
Fundamental reasons? I'm not even trying to have an opinion. And I don't think PRC investors base their decisions on fundamental assessments. Who needs to go to Macao or Vegas, when it's so much easier to gamble on the stock-market instead?