The 8.48% fall in China’s Shanghai Composite Index on 27 July 2015 was nicknamed Black Monday.
The decline was the index’s largest single-day percentage fall since 2007 and occurred during a turbulent period for Chinese shares. The market had surged in the preceding year, supported partly by margin borrowing and strong investor enthusiasm.
As prices turned lower, leveraged investors faced pressure to sell, while concerns about China’s economic growth and the effectiveness of government support measures increased uncertainty. The sell-off affected other markets and contributed to renewed global worries about growth.
This event is distinct from the 1987 Black Monday in the United States and from the 2020 market crash. “Black Monday” is a recurring market nickname, so the date and index are essential for identifying the 2015 Chinese episode.