Peoples’ Bank of China

China Contagion: Hong Kong Growth Stock Index Plunges 13%

Despite suspending trading in over 1300 of the 2800 stocks listed in China, the “Shanghai Stock Exchange B Share Index” of growth stocks suffered another 7 percent loss Tuesday and the neighboring Hong Kong ‘S&P Growth Enterprise Market Index’ plunged by 12 percent. With Chinese stock losses now over $3.5 trillion since June 12, contagious fear is sending every major stock exchange around the world tumbling.

China stock crash (Isaac Lawrence / AFP / Getty)

Barclays Bank Says China Capital Flight Twice as Big as Russia’s

Barclay’s Bank estimates that despite a hot stock market, the China suffered $300 billion in capital flight and is facing its first foreign exchange liquidity crisis since 2000. The news follows a report that China’s GDP is experiencing negative growth in real terms, thanks to collapsing domestic demand.