Billions in savings frozen, thousands of investors protest in China
Angry protesters demanded access to their savings that have been frozen by the banks since mid-April. According to reports, frozen deposits could be worth up to $1.5 billion.
FollowRaising serious questions about the credibility of banking infrastructure in China, massive protests are being witnessed in the Chinese city of Zhengzhou in Henan province against the local government's 'corruption and violence'.
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Angry protesters demanded access to their savings that have been frozen by the banks since mid-April. According to reports, frozen deposits could be worth up to $1.5 billion.
With millions of deposits frozen, thousands of small investors have been left without funds and anguished over their livelihood. Depositors have staged several demonstrations in Zhengzhou. Even some banks in the neighbouring province of Anhui, which offered high-interest rates, have also run into financial trouble.
Protests were witnessed on Sunday outside the Zhengzhou branch of the People's Bank of China -- the country's central bank. Thousands protested, demanding action and access to deposits. Videos doing the rounds on social media showed banners reading, "the corruption and violence of the Henan government". Other videos of the protests showed protesters being manhandled by security guards and dragged away from the protest sites.
The Modus Operandi
On their part, the regulators said they a plan will be implemented soon to resolve the impasse.
Meanwhile, police have nabbed a number of suspects linked to the scandal. According to reports, the suspects operated a group company to control several banks. They reportedly used third-party financial product platforms to collect deposits and then cooked up fictitious loans to route the funds illegally.
Covid App manipulated to halt protests?
Protests against the errant banks had been on since May after four banks in the Henan province -- Yuzhou Xinminsheng Village Bank, Zhecheng Huanghuai Bank, Shangcai Huimin Rural Bank and the New Oriental Village Bank -- froze deposits a month earlier.
Chinese authorities reportedly compromised the digital Covid-tracking system to prevent demonstrators from gathering. That meant protesters moving towards Zhengzhou were red-flagged and restricted from moving around even though they reportedly had no symptoms or were nowhere near infected persons.
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