What 2015 market crash began after China’s Shanghai Composite had risen dramatically from mid-2014?

The 2015 market crash that followed a dramatic rise in China’s Shanghai Composite from mid-2014 was the 2015–2016 Chinese stock market turbulence.

China’s mainland share markets surged during the year leading to June 2015, encouraged by abundant margin financing and strong participation by individual investors. The Shanghai Composite reached a closing peak of 5,178.19 on June 12, 2015. It then fell rapidly as leveraged investors faced losses, regulators changed trading rules, and confidence weakened.

The Shanghai Composite dropped more than 30 percent in the following weeks. Chinese authorities introduced measures including restrictions on some share sales, support for major stocks, and investigations into market activity. International markets also experienced episodes of volatility, particularly in August 2015 and early 2016.

The episode is not the same as the 1997 Asian financial crisis. The 2015 turbulence was centered on mainland Chinese equities and leverage, whereas the earlier regional crisis began with currency and debt pressures in Thailand.