China’s Shanghai Composite fell sharply after its June 2015 peak during the Chinese stock-market crash.
The Shanghai Composite reached a major peak on June 12, 2015, after a powerful rally that had more than doubled the index from its 2014 level. The subsequent sell-off erased a large portion of those gains. Shares on the Shenzhen exchange and other Chinese markets also experienced severe volatility.
The rally had been supported by strong retail participation, margin borrowing, and expectations surrounding economic reform. When prices reversed, leveraged investors faced margin calls, forcing additional selling. The government responded with measures including trading suspensions, restrictions on certain sales, and efforts to stabilize major companies and brokers.
The episode is sometimes described as a single crash, but the turbulence unfolded in waves through 2015 and into early 2016. It differed from the 2008 global financial crisis because the immediate pressure was concentrated in Chinese equities and domestic financial conditions, although international investors watched it closely for evidence of wider economic weakness.