China’s 2015 stock-market crash followed a rapid rise in the Shanghai Composite Index and a sharp burst of selling.
Chinese mainland equities rose dramatically between mid-2014 and June 2015, helped by margin financing and strong retail-investor participation. The Shanghai Composite Index peaked at 5,178.19 on June 12, 2015. It then fell steeply, losing more than 30% by late August as leveraged investors faced margin calls and confidence weakened.
The turmoil continued into 2016 and affected markets internationally, although China’s economy did not enter a depression. Chinese authorities responded with measures including trading restrictions, support for selected shares, and changes to market mechanisms. The episode is often described as the 2015–16 Chinese stock-market turbulence rather than one isolated trading day. It should not be confused with Japan’s 1990 collapse or the 1997 Asian financial crisis.