Which Chinese stock index was at the center of the 2015–2016 Chinese stock-market crash?
Answer
Shanghai Composite Index
The Shanghai Composite Index was at the center of the 2015–2016 Chinese stock-market crash.
China's mainland equity boom accelerated in 2014 and the first half of 2015, with many retail investors borrowing to buy shares. The Shanghai Composite reached 5,178.19 on June 12, 2015, then dropped sharply as leveraged positions unwound and confidence weakened. Authorities attempted several interventions, including trading restrictions and support measures.
The turbulence returned in early 2016. On January 4 and January 7, 2016, newly introduced circuit breakers were triggered and then suspended after they appeared to intensify disruption rather than calm trading. The episode drew global attention because China's economy and markets were increasingly important to international investors.
The Shanghai Composite measures prices of shares listed on the Shanghai Stock Exchange. It should not be confused with the Hang Seng Index, which tracks major companies listed in Hong Kong, or with the separate Shenzhen Component Index.