Which index fell 8.9% on February 27, 2007, in a sharp global sell-off linked to concerns about China?

The Shanghai Composite Index fell 8.9% on February 27, 2007, in a sharp global sell-off linked to concerns about China.

The decline became known as “Black Tuesday” in China. Investors feared that Chinese authorities might take stronger measures to cool rapid market growth, including action against speculation and excessive trading. The Shanghai drop quickly affected markets elsewhere, even though the underlying concerns were concentrated in China.

U.S. and European shares also weakened that day, renewing debate about whether China’s expanding economy could transmit volatility internationally. The event was not the global financial crisis of 2008, but it was an important demonstration of the growing influence of Chinese markets.

The Shanghai Composite tracks both A-shares and B-shares listed on the Shanghai Stock Exchange. It is distinct from Hong Kong’s Hang Seng Index and the Shenzhen Composite. Those similarly named indexes are common sources of confusion when describing the 2007 sell-off.