2022 Henan banks protests
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 | This article is missing information about process of the protests. (July 2022) |
| 2022 Henan banks protests | |||
|---|---|---|---|
| Date | April 2022 - present | ||
| Location | |||
| Caused by | Fraudulent practices in rural banks | ||
| Goals | Access to depositors' funds | ||
| Methods | Sit-ins, protests, online activism | ||
| Status | Ongoing | ||
| Parties | |||
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| Lead figures | |||
Several leaders No centralized leadership | |||
| Number | |||
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2022 Henan bank protests are series of demonstrations against four regional lenders of Henan province over alleged financial corruption.[1][2] Over the course of the previous two months, depositors have held multiple protests in the city of Zhengzhou, which serves as the capital of the province of Henan.[3]
Background
There are over 1,600 rural banks in China, located in 31 provinces, accounting for about 36% of the total number of banking financial institutions in the country.[4][5] According to the statistics of the People's Bank of China, as of the second quarter of 2021, a total of 122 rural banks were high-risk institutions, occupying about 29% of all high-risk institutions.[4]
In April, four rural banks in the Henan province stopped allowing customers to withdraw cash because "the banks were upgrading their systems".[6] Later, however, the government arrested Sun Zhengfu, the main stockholder of the banks, for "serious financial crimes",[7] and an investigation by the China Banking and Insurance Regulatory Commission (CBIRC) wrote that a private investment company collaborated the banks to illicitly attract public funds via online platforms.[8] Consequently, thousands of individuals were denied access to their accounts, triggering recurrent price increases.[9] Furthermore, as a consequence of the growing volatility in the Chinese financial system, it would appear that Beijing is having difficulty finding a solution to the ever-increasing number of defaulted property loans that are being recorded on the books of smaller, regional lenders.[10] These loans are being registered as a default due to the increasing volatility in the Chinese banking system.[10]
Results
On July 12, the CBIRC announced it would start reimbursing account holders, with deposits of up to 50,000 yuan ($7,400) being the first to be returned.[11]
References
- ^ "Hundreds protest against corruption in central China". The Japan Times. 2022-07-10. Retrieved 2022-07-12.
- ^ "China detains alleged Henan bank fraud 'gang' after rare mass protests". CNA. Retrieved 2022-07-12.
- ^ CNN, Nectar Gan. "China crushes mass protest by bank depositors demanding their life savings back". CNN. Retrieved 2022-07-12.
{{cite web}}:|last=has generic name (help) - ^ a b Duan, Siyu (2022-06-21). Lin, Jiechen (ed.). "1651家村镇银行现在怎么样？鲁冀豫数量最多，全国122家为高风险" [How are the 1651 rural banks now? Shandong, Hebei and Henan have the highest number, with 122 of the rural banks are at high risk]. China Business News (in Simplified Chinese). China Business Network.
- ^ Goldman, David P. (12 July 2022). "Property market woes focus fiscal power in Beijing". Asia Times. Retrieved 13 July 2022.
- ^ Bartholomeusz, Stephen (2022-07-12). "China's response to bank protests hints at a wider problem". The Sydney Morning Herald. Retrieved 2022-07-12.
- ^ Mcgregor, Grady. "A rare, violent protest in China signals the start of a banking crisis". Fortune. Retrieved 13 July 2022.
- ^ "China Protesters Demand Back Billions Tied to Suspected Scam". Bloomberg News. 2022-05-25. Archived from the original on 2022-06-14. Retrieved 2022-07-13.
- ^ "Henan: Officials pledge to release funds after China bank protest". BBC News. 2022-07-12. Retrieved 2022-07-12.
- ^ a b "What's behind the Chinese bank runs?". Australian Financial Review. 2022-07-11. Retrieved 2022-07-12.
- ^ "China to Repay Bank Scam Victims After Protests Turn Violent". Bloomberg.com. 12 July 2022. Retrieved 2022-07-12 – via www.bloomberg.com.
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