Which 2015 Chinese market crash followed a rapid rise in Shanghai Composite prices and heavy margin trading?

The 2015 Chinese stock-market crash followed a rapid rise in Shanghai Composite prices and heavy margin trading.

Chinese mainland shares surged during the year ending in June 2015, with the Shanghai Composite more than doubling from its mid-2014 level. Retail participation, borrowing to buy shares, and expectations of continued economic support helped drive the advance. The market then turned sharply, and the Shanghai Composite fell by more than 30% between June and July.

The sell-off continued in August, when a surprise change in China’s currency-management approach added to international concern about growth and financial stability. On August 24, global markets suffered a particularly severe decline, a day often called Black Monday 2015. Chinese authorities responded with measures including trading restrictions, investigations, and support for the market.

The episode is sometimes described as a single-day crash, but it was actually a prolonged period of turbulence during 2015 and early 2016. It also differed from the 2007–08 global crisis because China’s market losses were not the original trigger of a worldwide banking collapse.