China’s 2015 stock-market crash reached its major low in August after the Shanghai Composite’s bubble burst.
The Shanghai Composite had risen dramatically between mid-2014 and June 2015, driven by retail participation, margin borrowing, and expectations of continued economic growth. Prices then reversed. In August, a series of sharp declines intensified global concern about China’s economy and financial markets.
The index fell 8.49% on August 24, 2015, a day widely known as Black Monday in China. It later reached a low on August 26, having lost a large share of its value from the June peak. Chinese authorities responded with measures including trading restrictions, support for selected shares, and changes affecting short selling and margin finance.
The episode was not the same as the 2015 currency devaluation, although both occurred during the same period. It also differs from the 2016 turbulence, when Chinese circuit breakers were activated and then quickly abandoned.