It’s becoming less safe to deposit cash in China’s banks. The entire banking system, including the big four state-owned banks, are now restricting withdrawals or online transactions. China is likely to have a massive bank run which will collapse the banking and monetary system, thus further devastating the Chinese economy.
This is Dandong, a city in Liaoning province, a major heavy industry province in northeast China, where people have been waiting in long lines at banks almost every day recently, hoping to get their money. Because the line is so long, local police have come to the scene to maintain order.
Chinese official media has indirectly confirmed that, to a certain degree, a bank run is happening in China. The headquarters of the People’s Bank of China in Shanghai said on June 20th that in the first half of June alone cash deployment was nearly four times that of the same period in 2021. However, the bank didn’t elaborate on whether the total amount of cash was sufficient to meet people’s withdrawal needs.
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