China’s stock market suffered the 2015 crash after concerns about slowing growth and falling share prices.
The Shanghai Composite had risen dramatically from mid-2014 into June 2015, encouraged by retail participation, margin borrowing, and expectations of continued economic expansion. After reaching a 2015 peak, Chinese shares fell rapidly, creating widespread losses and forced selling.
Authorities responded with measures including trading suspensions, restrictions on some share sales, and support from state-linked institutions. The intervention limited some immediate pressure but also raised questions about the role of government in China’s equity markets.
The episode is sometimes described as a single-day crash, but it was a broader period of turbulence from 2015 into 2016. It also differed from the 2008 global financial crisis: China’s turmoil centered on domestic equity valuations and policy responses, while the later global crisis was rooted heavily in international credit and housing markets.