What 2015 event saw China’s Shanghai Composite fall sharply after its 2014–2015 stock-market boom?

The 2015 event in which China’s Shanghai Composite fell sharply after a major boom was the 2015 Chinese stock-market crash.

Chinese mainland shares rose rapidly from mid-2014 into June 2015, supported by margin borrowing, retail participation, and expectations of continued economic growth. The Shanghai Composite reached 5,178.19 on 12 June 2015. It then declined sharply as leveraged investors faced losses and confidence weakened.

Chinese authorities responded with measures including trading restrictions, support for purchases by state-linked institutions, and investigations into market activity. The turbulence continued into early 2016, when global markets were also affected by concerns about China’s economy and currency policy.

The episode is sometimes called the 2015–16 Chinese stock-market turbulence because the instability extended beyond the initial summer collapse. It should not be confused with China’s separate property-market and debt problems, which developed on different timelines.