For reference, the Hong Kong Hang Seng Index, which opened earlier and also where many mainland Chinese companies are listed, was at ~ 29,000 points on 17th Jan, and now it is at ~26000, which is a drop of ~ 10%.

Shanghai Composite, which only opened today, was ~ 3000 points on 17th Jan and now dropped to ~ 2700

So it's mostly aligned in that sense.

The Hang Seng Index is at least not dropping further (slight up as of this morning) so the liquidity news is at least 1 positive factor helping the market.