China’s Shanghai Composite lost about 30% in the 2015 stock-market crash.
The Shanghai Composite had risen dramatically during the first half of 2015, helped by abundant margin lending and strong participation from individual investors. It peaked on June 12, 2015, before a rapid sell-off erased roughly 30% by early July. A second major wave of declines followed in August and continued into early 2016.
Chinese authorities responded with trading restrictions, investigations, limits on share sales by major shareholders, and support involving state-linked institutions. On August 24 and 25, 2015, global markets also fell sharply, partly because investors feared that China’s slowdown and currency changes signaled weaker world demand.
The episode is sometimes confused with China’s 2007–08 market crash, which followed an earlier bubble and peak. The 2015 turbulence centered heavily on leveraged retail speculation and policy uncertainty. It did not represent the collapse of China’s entire economy, which continued to grow, though at a slower pace.