{"id":"asset_a32056a6b93a","type":"text/plain","category":"text","name":"08-china-2015.txt","size_bytes":3883,"title":"08 china 2015","description":"An analytical account of China's 2015–2016 stock market crisis, covering the Shanghai Composite's rapid rise and fall, the state's interventions including trading halts and forced buying, the role of retail leverage, and the January 2016 circuit breaker mechanism. It examines whether emergency measures stabilized the market or damaged its credibility.","extracted_text":"# The Circuit Breaker That Caused the Panic: China, 2015–2016\n\nThe Shanghai Composite rose 150 per cent in the year to June 2015 and then fell\nmore than 40 per cent in ten weeks. Roughly $5 trillion of value was destroyed.\nThe state's response — banning large shareholders from selling, suspending\ntrading in nearly half of all listed companies, instructing brokerages to buy,\nopening central bank credit lines to a state-backed purchasing vehicle,\narresting a journalist who had reported on the sell-off — was among the most\ndirect interventions in a major market in modern history.\n\nThe bubble was, unusually, official. State media had spent 2014 and 2015\nencouraging retail participation, framing equity ownership as patriotic and as a\nroute to funding corporate deleveraging. Retail investors, who account for the\noverwhelming majority of turnover in mainland markets, responded — many opening\naccounts with no prior experience, a substantial share without a high school\neducation. They bought wi","attributes":{},"usable_for":["case study of market circuit breaker failure","state intervention consequences in equity markets","retail leverage dynamics in shallow markets","period detail on 2015 china financial events"],"provenance":"original-work","provenance_note":"An original analytical essay by its author.","kind":"analytical essay","reliable_for":"The author's argument about state market intervention and the evidence and examples it cites.","describe_v":6,"price_sats":{"card":0,"full":200},"content_available":true,"available":true,"retained_offered":false,"embed_offered":false,"licences":{"single-task":{"sats":200,"grants":"use for one task, then let go"},"retained":null,"embed":null}}