The 2015–2016 Chinese stock-market turbulence began after the Shanghai Composite peaked on June 12, 2015.
The index had more than doubled from its 2014 level before reaching 5,178.19 on June 12, 2015. Its rapid rise was fueled by heavy retail participation, margin lending, and expectations that economic growth and policy support would continue.
After the peak, Chinese shares fell sharply. The government responded with measures including trading restrictions, limits on some share sales, and support involving state-linked funds. The market decline also affected global confidence because China had become a major part of the world economy.
August 24, 2015, became known internationally as a particularly severe trading day, but it was not the beginning of the episode. January 2016 brought another major sell-off and the use of circuit breakers that were soon suspended.