China Stock Market Crash: One Year On

August 24 2015 was known as Black Monday; as Chinese shares plummeted, contagion concerns saw investors dump US and UK equities too - causing a global market slump

Emma Wall 24 August, 2016 | 8:00AM
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One year ago, investors were struggling to make sense of a global stock market slump. Equity prices in London, New York, Hong Kong, Shanghai, Frankfurt and Paris all fell on August 24, 2015 – thanks to China devaluing its currency in the preceding weeks.

“Any investors doubting the influence of China on global stock markets have had their reservations blown out of the water over the last week,” we reported on Morningstar.co.uk. “On top of China devaluing its currency, and the resulting fall in Chinese A and B shares listed in Shanghai and Hong Kong, Greece called a shock election last week. Markets do not like uncertainty, and so stocks began to fall.”

The Shanghai Composite lost 10% of its value on August 24, while the FTSE 100 and the Dow Jones both fell 5%, and the Nasdaq lost 10%.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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