The Shanghai Composite fell 8.5% on August 24, 2015, during China’s severe stock-market turbulence.
The decline became known internationally as Black Monday because it followed a prolonged sell-off in Chinese equities and spread fear through global markets. Investors were concerned about slowing Chinese economic growth, falling commodity prices, and uncertainty about government support for the market. The Shanghai Composite’s 8.5% fall was its largest one-day percentage decline since February 2007.
The 2015 episode was not a single-day event. Chinese shares had risen sharply during the preceding year, helped by margin borrowing and optimistic expectations. After the peak, forced selling and official interventions added to volatility. The Shanghai Composite tracks many companies listed in Shanghai, so it should not be treated as identical to Hong Kong’s Hang Seng Index or China’s technology-focused indexes.