The Shanghai Composite fell about 43 percent between its June and August 2015 peaks during China’s stock-market crash.
The index reached a major closing high of 5,178.19 on 12 June 2015. By 26 August, it had fallen to 2,927.29, a decline of roughly 43 percent. The sharp reversal followed a rapid market rise fueled partly by margin borrowing and strong participation by individual investors.
Chinese authorities responded with measures including restrictions on some selling, support for major companies, and changes involving market financing. The turmoil also affected international markets and contributed to fears about China’s economic growth.
The Shanghai Composite tracks all A-shares and B-shares listed on the Shanghai Stock Exchange, making it broader than an index limited to large blue-chip companies. It is often confused with the Shenzhen Component, which tracks selected companies listed in Shenzhen, or the Hang Seng Index, which represents Hong Kong-listed shares.