Me too! I even asked fellow teacher: 'Why are girls holding hands everywhere?' 

Today, I am guessing, that's got lot to do with 'one child' policy in China. You can also see boys more 'attached' to each other than in the West. 

Maybe reason for this is 'no sisters or brothers'.

I'm not too sure what age group your referring to but I think you'll find that students in even Western countries will arm cradle together. Coz they're mates, friends. Just displaying theie affection and togetherness. Anyway, it all gets out of their system as they get older.

Here's my take on it all for the 18+. Chinese students are stuck in this school mentality essentially, from Day 1 of their lives to 18. It escalates further more as the work gets tougher followed by tighter controls on them to have any social life outside from their desk. What happens is that this 11yr old mentality of holding hands, giggling, arm cradling, still not understanding what there period means, scratch that last one is still installed in their naive fragile little mind o' theirs. Whence while you'll still see this.

I guess with more westernization and universal practices between the same genders in what is 'gay' 'straight' 'right' 'wrong' or however the hell we perceive social gender will obviously change their mentality as time goes on.

Personally my initial reaction was wow, they must be 'good friends' - I would personally tell you to get your head out of your Western ass and acknowledge how Chinese girls are not afraid to display open affection for friendship.

Wow... a lesson in cultural differences caused by social issues. What is this, some sort of productive forum?

Yes, it's also done in France and South Korea.

I've noticed some boys do it too.

  They're afraid of someone stealing them. Actually I think girls of any country like to hold hands, don't they? What surprises me is the guys doing it. Not a homophobe but having been brought up in London, holding hands with a buddy in the street.........? T'would seem odd to me. Best thing i've seen was two soldiers armed with machine guns holding hands in an airport in Cairo. So sweet.

To protect their purses.

From my experience with my girls, it's just natural for us because we are very good friends and we have known each other for years. We don't' even think about it or make it a big deal. It means friendship and trust. But it feels weird to hold someone whom I'm not very familiar with, don't even wanna have any physical contacts.

if you were a chinese girl and you were told that your only option is a chinese man,would you choose another chinese girl also?

I think this is demonstration of sisterhood..