What was the 2015 collapse in Chinese shares after the Shanghai Composite’s rapid rise called?

The 2015 collapse in Chinese shares was called the 2015 Chinese stock market crash.

China’s mainland stock market rose rapidly during the first half of 2015, encouraged by easier financing, strong retail participation, and expectations that economic reforms would support valuations. The Shanghai Composite reached 5,178.19 on June 12, 2015. It then fell sharply, with leveraged investors facing margin calls as prices declined.

Authorities responded with measures including restrictions on some share sales, support for purchases, and investigations into market activity. The turmoil continued into 2016, when additional volatility affected global markets. A devaluation of the renminbi in August 2015 also increased international concern about China’s economic outlook.

The event is separate from China’s 2007 stock-market bubble, although both involved rapid gains followed by major declines. It is also different from the 2015 global commodity downturn. The episode showed how margin financing and a large retail investor base can intensify both rising and falling markets.