China’s stock-market crash began in June 2015 and caused worldwide concern about Chinese growth.
The episode is known as the 2015–2016 Chinese stock-market turbulence. Chinese mainland shares had risen rapidly during the preceding year, supported partly by retail speculation and margin financing. After the Shanghai Stock Exchange Composite Index peaked on June 12, 2015, prices fell sharply.
Chinese authorities responded with measures including trading restrictions, intervention by state-linked funds, suspension of initial public offerings, and efforts to limit selling. The turbulence continued into early 2016 and contributed to volatility in markets around the world.
The crash did not mean that every Chinese company or every Chinese market fell identically. The Shanghai and Shenzhen exchanges were central to the episode, while Hong Kong’s market followed its own dynamics. A related concern was China’s economic slowdown, but the stock-market fall itself was driven by valuations, leverage, regulation, and changing investor expectations.