China’s stock market experienced a major crash after the Shanghai Composite peaked in June 2015.
The Shanghai Composite reached 5,178.19 on 12 June 2015 after a rapid rise that had attracted large numbers of individual investors. Share prices then fell sharply, and the index lost roughly one-third of its value in the following weeks. Turbulence continued into 2016, including a brief trading halt under China’s new circuit-breaker system.
The episode reflected excessive leverage, speculative trading, concerns about economic growth, and uncertainty about government intervention. Authorities responded with measures including trading restrictions, support for purchases, and investigations into market activity.
The Shanghai Composite is not the entire Chinese equity market. It tracks many stocks listed on the Shanghai Stock Exchange, while the Shenzhen Stock Exchange and Hong Kong-listed companies are separate parts of China’s broader market system.