Which 2015 Chinese stock-market crash followed a sharp rise in Shanghai share prices and heavy margin lending?

The 2015–2016 Chinese stock market turbulence followed a sharp rise in Shanghai share prices and heavy margin lending.

Chinese mainland equities rose rapidly from mid-2014 into June 2015. Retail investors played a major role, and borrowing to buy shares increased through margin financing. Valuations and expectations rose even as the underlying economy was slowing.

The Shanghai Stock Exchange Composite Index peaked on June 12, 2015, then fell by more than 40% over the following months. Authorities responded with trading suspensions, restrictions on some sales, liquidity measures, and investigations into market activity. A further sell-off occurred in early 2016.

The episode is not the same as China’s 2015 currency devaluation, although both increased international concern about the Chinese economy. It also demonstrated how leverage and forced selling can intensify a market decline.