China is heading to the 20th National Congress, but its financial system has turned abnormal. In a new development, the actions of rights protection of Henan rural banks’ depositors are turning into conflicts between the government and the people.
On June 29, the depositors continued to protest in front of the Henan Provincial Banking and Insurance Regulatory Commission building in Zhengzhou, seeking to retrieve their savings.
They have persisted in the heat for at least four days, some have heat stroke, but there is no success so far.
On June 26, New Oriental County Bank in Kaifeng City, Henan Province, briefly opened online transactions. But that night, some of the deposits withdrawn by depositors were recovered by the bank. The bank also announced that it would investigate depositors who withdrew money.
These people not only have nowhere to sue, but they are also being repressed.
Some videos show that customers continue to gather to demand their money back. A video uploaded on June 26 shows that a large crowd of people protest at the gate of the Banking and Insurance Regulatory Commission in Zhengzhou.
But on June 27, a video uploaded by the Twitter account “Henan Rural Bank Rights Protection” shows that Henan deployed a large number of police officers to the protest site.
A Twitter user posted a video of a Chinese SWAT convoy and commented that the village banks do not return deposits to depositors, but the government, instead, sent special police to arrest people. It is equivalent to forcibly confiscating the deposits of citizens!
A tweet described that police in plain clothes arrested the depositors who went to the China Banking and Insurance Regulatory Bureau in Zhengzhou to file a complaint. Some people were put on the bus, and more than a dozen gunshots were heard at the scene.
A person in charge of loan approval at a bank in Sichuan said that it is hard to imagine what will happen to the Henan banks with a large-scale collapse.
Commenting on Zhihu, a Chinese online question-and-answer site, he explained that new loans could not be released, and few old loans could be recovered. Most of the loans are short-term, but used as long-term ones.
He said that the main reason behind this situation is real estate. The vast majority of non-performing loans are related to real estate. An incident happened in a village bank recently, triggering a major investigation in the industry.