China’s Shanghai Composite Index fell 8.48% on Black Monday, August 24, 2015.
The drop was the index’s largest single-day percentage decline since February 2007. It occurred during a broader sell-off that affected stock markets around the world, with investors worried about China’s slowing economy, falling commodity prices, and uncertainty about economic policy.
The Shanghai Composite had surged during the preceding year before turning sharply lower in June 2015. Chinese authorities responded with measures including interest-rate cuts, restrictions on some share sales, and efforts to support market liquidity.
This episode is sometimes confused with the 2016 Chinese market turmoil. The 2015 crash centered on the sharp reversal from a speculative rally, while the following year’s market disruptions were strongly associated with circuit-breaker rules and renewed concerns about growth.