You get the feeling that the people manipulating the markets are ignorant of the basic psychology involved here.
The proper way to do this is to officially say: "We believe in letting markets find their value and we believe they are sounder than many think" while unofficially pumping money in like crazy.
It gives me the impression the credibility of the "new Mandarin" approach of China's rulers is being torn to shreds. Not sure what the upshot will be.
China's rulers will also be torn to shreds?
I'm not saying it's impossible, but it wouldn't be a military coup; it would be the CCP splitting and turning on itself.
The Chinese military is not a separate military in the way we think of it in the West. They are the armed wing of the Chinese communist party. An enormous amount of time is spent on political indoctrination; not just when joining the PLA, but continuing throughout one's time in the PLA. Senior military commanders are senior party members. The PLA does not stand for the the Chinese constitution or the Chinese people, but for the CCP, of which they are an integral part.