China stock market: How legitimate was the cause for panic in 2015?

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Here is a quick chart showing the price ranges of the SSE Index:


Note: 2016 ends on January 8th.

The highest level during the "2015 bubble" did not actually reach as high as the top price either in 2007 or 2008.

And when prices hit the bottom in 2015, the price level was still higher than the highest prices of 2012 or 2013.

The lowest price of 2015 was higher than the average price 2009, 2010, 2011, 2012, 2013, and 2014.

Shortening the horizon of the first chart, it is even clearer that volatility was high 2015 but the lowest price level 2015 was not a disaster (except for those who started trading in 2015).


A chart that shows prices on each day does not quite communicate as clearly that 2015 should not have been viewed as so horribly scary:


Data source: Wind Info

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