China’s 2015 stock-market crash began its most dramatic sell-off in 2015. After a powerful rally, mainland Chinese equities fell sharply from June 2015, with the Shanghai Composite losing a large portion of its value over the following months.
The rally had been supported by retail speculation, margin borrowing, and expectations that economic reforms would raise valuations. As prices turned lower, leveraged investors faced margin calls, creating additional selling pressure. The government responded with measures including trading restrictions, support for share purchases, and investigations of alleged market misconduct.
The turbulence continued into early 2016, so the episode is often labeled the 2015–2016 Chinese stock-market turbulence. It is distinct from China’s later regulatory and property-market stresses. Another common mix-up is confusing the Shanghai Composite’s percentage decline with the much larger point difference between its peak and trough.