China’s stock exchanges suffered the 2015 crash known as Chinese stock-market turbulence. The episode centered on the Shanghai Stock Exchange and the Shenzhen Stock Exchange after a powerful equity rally lost momentum in June 2015.
The Shanghai Composite had more than doubled from its low in 2014 to its June 2015 peak. Many individual investors participated, and margin financing increased exposure to rising prices. When prices began falling, leveraged investors faced pressure to sell, creating additional downward momentum. The Shanghai Composite fell by roughly one-third in the month after its June peak.
Chinese authorities responded with measures including interest-rate cuts, restrictions on some share sales, support for purchases by state-linked institutions, and investigations into market activity. Volatility continued into 2016, when circuit-breaker rules were introduced and quickly suspended after disruptive trading sessions. The episode is separate from the 2007–2008 global financial crisis, although international investors watched it closely.