Stock market volatility in the past decade

January 8, 2016

The volatility of China's stock market was a big story last year, particularly around the summer. Already the market has had a rough start to the year, with authorities twice halting trading in the first week of 2016.

The chart below shows the number of days when Shanghai's stock market declined by at least 5% over the last ten years. Between 2011 and 2014, a dramatic stock price decline had occurred only twice. The chart confirms last year was unusually volatile, with the second highest number of 5% annual drops in the last decade.

Jan stock1

Source: Wind Info Note: Data is SSE A share index



The CSI300 fell by more than 5% about 20 times during Q3 2015 - but only within trading hours, not from open to close. The former is closer in spirit to the circuit breaker criteria, rather than the opening or closing valuation each day which omits quite a bit of volatility.

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Jan Zilinsky Former Research Staff

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