The country whose stock-market crash began in June 2015 after a rapid rise and heavy margin borrowing was China.
China’s mainland equity markets rose dramatically during the year leading up to the crash. Many individual investors entered the market, and borrowing to buy shares, known as margin financing, increased rapidly. When prices began falling in June 2015, leveraged investors faced pressure to sell, accelerating the decline.
The Shanghai Stock Exchange Composite Index fell sharply between June and July, despite measures by Chinese authorities intended to stabilize markets. Trading restrictions, state-backed purchases, and investigations into short selling formed part of the official response. A renewed sell-off occurred in August 2015 after a change in China’s currency policy.
This episode is often called the Chinese stock-market turbulence rather than a single one-day crash. It should not be confused with China’s later market declines during the COVID-19 pandemic or with the 2015–2016 global commodity downturn.