The PBoC devalued the yuan by 1.9% on August 11, with cumulative devaluation reaching 3.5% in three days. The S&P 500 fell over 11% from mid-August to its intraday low of 1,867 on August 25, entering correction territory. The index recovered most of the decline by early November.
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ALAN INTELLIGENCE · alanglobalintelligence.com
ALAN IntelligenceData as of 2026-08-30
Bars: median S&P 500 forward return. Whiskers: 25th-75th percentile. n = 1 occurrences.
Based on 1 historical occurrences. Last triggered: 2015-08-11.
Past performance is not indicative of future results. This material is for informational and educational purposes only and does not constitute investment advice, an offer to buy or sell any security, or a recommendation. Data from publicly available sources believed to be reliable but not guaranteed. All investments involve risk, including possible loss of principal.
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ALAN GLOBAL INTELLIGENCE · alanglobalintelligence.comSource: S&P 500 daily closes · Generated 2026-08-30
Historical occurrencesshowing 1 of 1
Date
1M return
1Y return
5Y return
2015-08-11
-6.3%
+4.4%
+62.2%
What history says
Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.
The selloff was about fear, not fundamentals
A 3.5% currency move is modest. The market reaction was driven by fears that China's economy was far weaker than reported.
Mechanical selling amplified the decline
The August 24 flash crash saw the Dow fall 1,000 points at the open. Volatility-targeting strategies turned a correction into a liquidity crisis.
The China hard landing never materialized
China's GDP slowed from 7.0% to 6.9% in 2015 — a deceleration, not a crisis.
For your portfolio
Currency-policy surprises from major economies tend to be repriced as growth scares, and 2015's proved far smaller than feared — a modest devaluation, a mechanical selloff, recovery within a quarter. If China policy risk concerns you, size direct China and China-revenue exposure deliberately; selling US beta into a devaluation air pocket has historically meant selling the fear, not the fact.
For information and research only. Not investment advice. ALAN does not place trades or execute orders. Figures come from the sources shown and can lag the market; verify independently before making decisions. Past performance is not predictive of future results.
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ALAN is not a broker-dealer or investment advisor. All data is informational only and does not constitute investment advice. Past performance does not guarantee future results.