$6 billion of missing deposits in China and how protests are being suppressed

China | Economy | Banks | Deposits | 6 Billion | Protests


Since mid-April, many depositors have been unable to withdraw their money from several rural banks in Henan. According to the media, the amount involved is about 40 billion yuan (6 billion $) and affects about 400,000 customers.

"More than 400,000 depositors of six rural banks in central China’s Henan province are being urged to file their cases to banking regulators if they cannot withdraw their money, which reportedly totals 40 billion yuan (US$6 billion)."-BL

The Chinese government is trying to prevent protests by customers who do not have access to their frozen deposits. One means of doing so is through the health code app.


"Health Code runs on the digital platforms of Alipay and WeChat. It runs through a real-name registration system and acts as a smart pass for people to travel and access to services. Health Code requires you to provide your personal information, travel history and health record to rate your risk of contracting COVID-19. You will be given either red, yellow or green code. If you are given a green code, you are allowed to travel freely. A yellow label indicates you are a potential virus carrier and should be isolated at home. A red label means you are a confirmed case and should be in quarantine." -Medium.com

Source: 山西频道--人民网_网上的人民日报 (people.com.cn)


According to Reuters, this app is now being used specifically to suppress these protests.

"A man surnamed Liu, who lives in Hubei province, found that his health code turned red on the morning of June 12 after he registered the day before to travel to Henan." -Reuters
"More than 200 depositors were similarly blocked when their health codes turned red, according to members of a WeChat group.It could not be ascertained if the change in code was intended to block the protesters or for another reason, but three depositors told Reuters they knew people who had registered to travel to Henan, who were not connected to the frozen funds, whose codes did not turn red." -Reuters

In a statement by the China Banking and Insurance Regulatory Commission, the following is said about the incidents in Henan:

"Henan New Fortune Group, a shareholder of the four village banks, has illegally absorbed the public's funds through internal and external collusion, the use of third-party platforms, and fund brokers," the China Banking and Insurance Regulatory Commission told state-run Xinhua News Agency -CNN

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Sources:

https://finance.sina.com.cn/money/bank/bank_hydt/2022-05-31/doc-imizmscu4365130.shtml

https://posts.careerengine.us/p/62abaf5b301c783cd3ec50f8?from=latest-posts-panel&type=previewimage

https://thebl.com/china/6-billion-of-missing-deposits-in-henan-rural-bank-who-is-responsible.html

https://asiatimes.com/2022/06/china-banking-scandal-may-involve-us6-billion/

https://www.reuters.com/world/china/china-bank-protest-stopped-by-health-codes-turning-red-depositors-say-2022-06-14/

https://medium.com/assay/chinas-health-code-app-showcases-the-extreme-smart-surveillance-regime-282d11acb4bf

https://edition.cnn.com/2022/06/23/economy/china-bank-runs-protests-intl-mic-hnk/index.html

https://www.youtube.com/watch?v=baz_brnrPFI

















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