China’s stock-market plunge in 2015 helped trigger a global market sell-off. Chinese mainland share prices had risen sharply during the first half of the year, supported by retail speculation, margin borrowing, and expectations of continued economic growth.
The Shanghai Stock Exchange Composite Index reached a 2015 closing high of 5,178.19 on June 12. It then fell steeply, and a further wave of selling in August spread through international markets. On August 24, often called Black Monday in China, the Shanghai index dropped 8.49%.
The sell-off reflected concerns about China’s economy, currency policy, excessive leverage, and the government’s efforts to stabilize prices. It did not represent a single worldwide crash on the scale of 1929, but China’s importance to global trade and commodity demand made the fall significant for investors around the world.