China’s Shanghai Composite Index lost 8.84% on 27 February 2007.
The fall became known internationally as “Black Tuesday” and was the index’s largest one-day decline in about a decade at that time. Investors feared that Chinese authorities might introduce stronger measures to cool a rapidly rising stock market and restrain speculation.
The decline also affected markets abroad, although the Shanghai fall was not the beginning of the 2008 global financial crisis. China’s market had risen dramatically during the preceding boom, attracting many inexperienced retail investors and encouraging speculative trading.
The Shanghai Composite later continued climbing and reached a major peak in October 2007 before falling during the worldwide financial crisis. The 2007 episode is therefore distinct from China’s much larger stock-market turbulence in 2015.