2015–16 Chinese stock market turbulence

2015 Chinese stock market crash2015–16 Chinese stock market crash2015–2016 Chinese stock market crashChina experienced a stock market crashChinese stock market crasheconomic slowdown in Chinahight variations on stocks' valuesmeltdown in the Chinese Stock marketsharp, sustained drop in the Chinese stock market in 2015stock market crash
The Chinese stock market turbulence began with the popping of the stock market bubble on 12 June 2015 and ended in early February 2016.wikipedia
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Cross-Border Inter-Bank Payments System

Cross-Border Trade
On 8 October 2015 China launched a new clearing system developed by the People’s Bank of China (PBOC) - Cross-Border Inter-Bank Payments System (CIPS) - to settle cross-border RMB transactions and intended to "increase global usage of the Chinese currency", by "cutting transaction costs and processing times" and removing "one of the biggest hurdles to internationalizing the yuan".
It was reported to be a second setback to the plan to provide a unified network for settling deals in yuan after technical problems delayed its launch, and that other measures to open up China's financial infrastructure have been dented by the 2015 Chinese stock market crash.

Shanghai Stock Exchange

ShanghaiChinese stock marketnational share transfer system
A third of the value of A-shares on the Shanghai Stock Exchange was lost within one month of the event. Following a period of closure during the early history of the People's Republic of China, the modern stock market in China reemerged in the early 1990s with the re-opening of the Shanghai Stock Exchange, and founding of the Shenzhen Security Exchange.
2015 - hight variations on stocks' values, with solid raise in early 2015 followed by -30% fall in June-July.

Market trend

bull marketbear markettrend
In China, the stock market trading activity is dominated by individual investors (close to 85%) – also known as ‘retail investors.’ Indicative of the sheer size of investor inflow into the markets, after several months of a bull market developing in China, more than 30 million new accounts were opened by retail investors in the first 5 months of 2015, according to data from the China’s Securities Depository and Clearing Corp. And while a larger, more active investing population generally means greater market capitalization, many of these new traders were inexperienced and easily manipulated by the buying frenzy, with nearly two thirds having never entered or graduated high school, according to a survey by China’s Southwestern University of Finance and Economics.
See also 2015 Chinese stock market crash.

Xu Xiang

On 1 November billionaire hedge fund manager, Xu Xiang - known as China's Warren Buffett, or China's Carl Icahn - was arrested for allegedly manipulating the stock market during the 2015 Chinese stock market turbulence.
In 2015, he manipulated the stock market during the stock market crash in summer.

2015–16 stock market selloff

2015-08-262015-16 stock market selloff2015 stock market selloff
2015 stock market selloff
It included the 2015–16 Chinese stock market turbulence, in which the SSE Composite Index fell 43% in just over 2 months between June 2015 and August 2015, which culminated in the devaluation of the yuan.

Black Monday

the day after the season ended1987 sharemarket crashstock market crash of 1987
As a result, billions of pounds were lost on international stock markets with some international commentators labeling the day Black Monday.
24 August 2015 – 2015 Chinese stock market crash. The SSE Composite Index declined by 8.45%.

Anatole Kaletsky

As China experienced a period of stock market turbulence in the summer of 2015 worsened by "economic weakness, financial panic, and the policy response to these problems", Anatole Kaletsky disagreed with those who claimed that China was the "global economy’s weakest link".
As China experienced a period of stock market turbulence in the summer of 2015 worsened by "economic weakness, financial panic, and the policy response to these problems," Kalestsky disagreed with those who claimed that China was the "global economy’s weakest link."

Stock market bubble

bubblespeculative frenzystock market boom
The Chinese stock market turbulence began with the popping of the stock market bubble on 12 June 2015 and ended in early February 2016.

A-share (mainland China)

A sharesA shareA-share
A third of the value of A-shares on the Shanghai Stock Exchange was lost within one month of the event.

International Monetary Fund

IMFInternational Monetary Fund (IMF)the International Monetary Fund
At the October 2015 International Monetary Fund (IMF) annual meeting of "finance ministers and central bankers from the Washington-based lender’s 188 member-countries" held in Peru, China's slump dominated discussions with participants asking if "China’s economic downturn [would] trigger a new financial crisis".

S&P 500 Index

S&P 500 ComponentS&P 500S&P
By the end of December 2015 China's stock market had recovered from the shocks and had outperformed S&P for 2015, though still well below the 12 June highs.

Xinhua News Agency

XinhuaXinhua NewsXinhua News Agency Hong Kong Branch
According to 19 January 2016 articles in the Xinhua News Agency, the official press agency of the People's Republic of China, China reported a 6.9 percent GDP growth rate for 2015 and an "economic volume of over ten trillion U.S. dollars".

China

🇨🇳ChinesePeople's Republic of China
According to 19 January 2016 articles in the Xinhua News Agency, the official press agency of the People's Republic of China, China reported a 6.9 percent GDP growth rate for 2015 and an "economic volume of over ten trillion U.S. dollars". Following a period of closure during the early history of the People's Republic of China, the modern stock market in China reemerged in the early 1990s with the re-opening of the Shanghai Stock Exchange, and founding of the Shenzhen Security Exchange.

Shenzhen Stock Exchange

ShenzhenShenzhen Stock Exchange (SZSE)SZSE
Following a period of closure during the early history of the People's Republic of China, the modern stock market in China reemerged in the early 1990s with the re-opening of the Shanghai Stock Exchange, and founding of the Shenzhen Security Exchange.

Market capitalization

market capitalisationmarket capcapitalization
By 2000, the Chinese stock market had over 1,000 listed companies, worth a market capitalization of nearly a third of China’s overall gross domestic product (GDP), and by the end of 1998, investors had opened nearly 40 million investment accounts.

Gross domestic product

GDPnominal GDPper capita GDP
By 2000, the Chinese stock market had over 1,000 listed companies, worth a market capitalization of nearly a third of China’s overall gross domestic product (GDP), and by the end of 1998, investors had opened nearly 40 million investment accounts.

Great Recession

late-2000s recessionrecessionlate 2000s recession
China's economic growth, however, was stunted by the 2008 global recession and its aftershocks.

Stimulus (economics)

economic stimulusfiscal stimulusstimulus package
The Chinese government responded to 2008 recession with a stimulus package that would draw resources from both the public and private sectors in order to fund an unprecedented infrastructure build.

Infrastructure

infrastructuralinfrastructureswater infrastructure
The Chinese government responded to 2008 recession with a stimulus package that would draw resources from both the public and private sectors in order to fund an unprecedented infrastructure build.

Chinese Dream

China Dream[China's] rejuvenation
Seeing the opportunity for a nationwide reinvestment into the economy through the stock market, the government developed a campaign that would entice everyday citizens to trade – it was referred to as "Zhongguomeng", which translates to the "China Dream".

Xi Jinping

XiPresident Xi JinpingXi Jingping
First conceived and pushed by the President of China, Xi Jinping, the ‘dream’ was one of overall economic prosperity and an elevated international status.

Financial market participants

retail investorsmarket participantsaristocrats of finance
In China, the stock market trading activity is dominated by individual investors (close to 85%) – also known as ‘retail investors.’ Indicative of the sheer size of investor inflow into the markets, after several months of a bull market developing in China, more than 30 million new accounts were opened by retail investors in the first 5 months of 2015, according to data from the China’s Securities Depository and Clearing Corp. And while a larger, more active investing population generally means greater market capitalization, many of these new traders were inexperienced and easily manipulated by the buying frenzy, with nearly two thirds having never entered or graduated high school, according to a survey by China’s Southwestern University of Finance and Economics.

China Securities Regulatory Commission

securitiessecurities regulator
Leading up to the crash, in an attempt to free up additional money for trading, the China Securities Regulatory Commission (CSRC), responsible for proposing and enforcing securities laws, had loosened several related financial regulations.

Short (finance)

short sellingshortshorting
Prior to significant policy reform in 2010, the act of selling short – essentially, borrowing and selling stock with the belief that its price will fall – and trading on margin – trading with debt – were strictly prohibited in China.