China's stock market has had an ugly month. After falling more than 5% today, the Shanghai Composite is now down 14%-plus in June.
These declines are really nothing new for China, however. It's easy to forget, but the Shanghai was actually lower than it is now just last December. As shown below in the long-term chart of the Shanghai, with the exception of a nice bounce in the months after the end of the financial crisis, it has been in a steady downtrend since its bubble peak back in 2007. At this point, the Shanghai is just 21% above its financial crisis low. Over this time period, the S&P 500 is up 58%.