Protests In China: The Story Behind the Bank Scandals

In China, a major financial crisis is unfolding. A few months ago, four rural lenders in the northern province of Henan froze the deposits of hundreds of thousands of customers and Chinese citizens in 86 cities are boycotting mortgage payments towards their homes. Confidence in the financial sector has plunged. In this video we look at the story behind the bank scandals.

Patrick’s Books:
Statistics For The Trading Floor:
Derivatives For The Trading Floor:
Corporate Finance:

Patreon Page:

Visit our website:
Follow Patrick on Twitter Here:

Patrick Boyle On Finance Podcast:
Google Podcasts:

Join this channel to support making this content:

Written by Patrick Boyle


Leave a Reply
  1. Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel.

    : Marc De Mesel, Nate Stapleton,Timothy Baird, WIlam, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Pjotr Bekkering, Alex, Robert W Proudfoot, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Daniel Talero, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, David Wang, Yazan Qaraqish, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Stephen Mortimer (to The Moon), Ryan B. Hicks, Liam, Logan Vrankovic, William Heaton, Paul McCourt, Daniel, Aaryan Koura, Steven, Christopher Boersma, Ulf Lundblad, Dorothy Watson, Greg Blake, Simon Bone, Livermores Quant, The Collier Report, Scott Gardner, The Man Koala, Brian McCullough, Daniel S. Smith, Finance Student, Julie, Mohammad Rehman, James Wallace, Daniel Poellmann, Edosa Odigie, Dixon Yuen, Marek Novák, Stamatis Drepaniotis Michael Smith, Ahmed Hamadto, Chris Davey, Mike Farmwald, Michael A. Mayo, Lachezar Georgiev, Kamet Batra, Bradley Johnson, Sagar Gudi, Michael Chessar, Kate ATL, Tong Cheung, Lady Dje, James Barnes, Chris Hall, Kurt Johnston, ICBM Catcher Juan Valdes, KernelSC, Linn Engström, Veltsh, Konrad P-kala, Pastacat, Adam Vorting, Matthew McQuade, Christopher Lesner, freebird, Kenneth WedMore Lund, erfective, Jason Young, Jonathan Kopnick, Peter Hendrickson, steel, Bastien, Tom Willett, Chris Whitehead, Anil Jason, JOJO, AS7, Greg Thatcher, Ezekiel Templin, MrLuigi1138 Grecia Bate, Leszek Frankowski, Nam Nguyen, Goutham, Karim THIBAULT, C, David R. Ingemi, Robert Wave, Dmitri Alexeev, Aaron Rose, Ethan Hernandez, Claude Chevroulet, Adrian, Stephan Marosvary, Louis Julien, Jan Lukas Kiermeyer, Gearoid O Connor, Fredrick Saupe, Subliminal Transformation, Alex McMahon, Adi, Ben, Kurt Mueller, Joaquin Madruga, Janusz Wieczorek, Federico Viscomi, Corgi, Mahdi, Burgerinn, Quinn Cone, QiKaiQian, Stephen, Joshua Rosenthal, Frank Yashar, Michael Smith, Emilian Marius Tudor, Julian Aßmann, Cormac, Ian Shearer, Theodosius the Elder, Michael Kopřiva, Tinni, Goran Milivojevic, chris, Joe Del Vicario, Alexandre Mah, ultima9, Norman A. Letterman, maRiano polidoRi, Stephan Prinz, Gary Yrag, Mattia Midali, Matthew Berry, Ann Williams, Jay T, Gabor, Florian Haas, Shivendra Saklani, Zachary Tu, Jeffrey, Lane Alan Deyoe, Chett Flynn Jonathan Horn, Mo Herbert, Lane Andrews, Justin Thuet, Olaf Thiele, Ivan Ilaev, Todd Gross, Douglas Caldwell, Wade Hobbs, Volodymyr Palii, James Hoctor, Gavotti SGP, Ryne Davis, Jean-Philippe Lemoussu, Keanu Thierolf, Grizzly Grey Bear, Muhammad, Michael Chow, Stefan Alexander, James Blandford, Miroslav Ognyanov, Scott Guthery, Vanya Davidenko, Arto Karhu, James Bache, Jason Harner, Dale Patch, Stefan Penner, Mischa Trunz, Arvid, Eric, Jonathan Metter, Junhong Low, John Way, Maria Baker, Luke Solomon, Sharath Vulupala, Keith Elkin, Chris Nicholl, Luis Carmona, Vinci Chan, Olivier, Yasha, James Yoh, Eduardo Martinez, Adi Blue, Swain Gant, georgejr, hyeora, Brian, old gambling art bag, Boussaken, Lukas Braszus, Vik, Chris Albertson, Sprite_tm, Keith, Anurag Kumar, matt f, Douglas Caldwell, Ryan Stewart-Gardnier, Adgn, Ronald London, Chris Rock, Tuan Nguyen Minh, Daniel Baak, Ida Sanchez, Jeremy King, Maria, Julien Debache, M1, Dougald Middleton, Tom, Diarmuid Kelly, Subodh Kafle, Gregory Mahoney, Angelo Rauseo, Christopher De La Cruz, Kirsten Banuelos, Ryne Davis, Era, Anne Molphy, Ekaterina Lukyanets, Alfred, sugarfrosted, Okkie, rswaggs, Larry, Sarah, miilo, EatEmAll, Alexandre GUYAMIER-CROISSANT, Alex C, Dan Challas, Tobias Kunkel, Henk S, Pinky Liu, Noel Kurth, John Tran, Daniel Soderberg, Daniel Ralea, Jann Tucek, Steve Crotti, Micah Stott, Shaun Deanesh, Duy Tran, Jacob Ceferin, DaFlesh,Nathan McIntosh, Dominique Buri, Marcelo Melchionna Torres, Florian, B P, Bortolini Thomas, Manmeet Sheera, Stephen Walker, Richard Stagg, Bo Grünberger, Justin Sublette, Glasphemy, Zackk, R, Omega Universas, Liam Proctor, Paul Twilley, Michael Williams and Yoshinao Kumagai

  2. I wish people would stop making comparisons to the US bubble burst in 2008, they are completely different. The US system is totally different to the Chinese system. From what I'm seeing about this Chinese crisis the amounts here and the effect on China is far greater than 2008 in the US. Corruption in the Chinese system is so systemic that is makes any other corruption anywhere else in the world pale in comparison. That is a fact, even the BR initiative promotes and encourages corruption in the nations they build infrastructure. These are facts whether you like it or whether you believe it or not. If you're Chinese and you don't like what I've said here then maybe it's time to wake up and start realizing how badly your country is and has been run for the past 20 years. The growth of the economy is factually due to foreign investment and has nothing to do with innovation or real internal economic growth. The economic growth of the property market again was due to the foreign investment which lead to many rural peoples migrating to urban areas to earn money from this foreign investment. Without the foreign investment there would not have been any property or financial system growth, and what's happening now in China is proof of that. Yes the ridiculous zero policy is playing a big part but other than that it was the untying of production links between foreign companies, how many have since 2020 left China? You're talking hundreds if not thousands, and not small companies, big names, Apple, Samsung, Sony, Toshiba, Foxconn, and these are just the electronics ones, what about the other sectors. People don't realize that this is what has and is causing the collapse, people think it's simply the development and property sectors which effects banks, but the reality is that many companies fleeing China has has an indirect effect on the property sector, unemployment in China is growing at an increasing rate every month.

  3. The prepaying system for real estate has existed for a long time before it came to China. The system continues to operate and deliver in many said regions and countries. What's different in China is unique in the mind of her population, that everything is for a quick buck, other than the nationalized strategic industrial complex, which is really ironic. It's like the handful of the top elite is to run the whole country times 10 to make up the lost time from the past mismanagement. So when things blows up, we can anticipate the power will be much more spectacular as elite's control can't reach every little details of every Chinese life even they tried.

    And as I conclude, Boyle is reporting on the symptoms of the economy mechanisms, which is really driven by shaping and reforming of the Chinese identify, moral, and value systems by the Chinese Communist Party. It's a gigantic flow of (docile) human capitals and society that mixed with half-cooked western values and methods. This forms the Frankenstein of the new 'experiment', as gracefully explained by chairman Xi.

    I believe this flow will continue as the cost to change is in-affordable although it is slowly self dismantling, much like how some of the west is doing (hello US/EU). The race to who will collapse first is eerily familiar.

  4. The leaders do not respect ownership of private property, thus use and ownership is a the pleasure of the cabal not under law.

    It is a hard system for us to understand. One in which relationships with leaders is essential.

    The developed property, the developers, the mortgage payment, and even the income of the property owner is all at the whim and power of local leaders.

    Not sure how this system cannot collapse.

  5. An unremarkable 6th grader could have told you the Chinese property market was overdue for collapse. I don't take joy in seeing people lose their life savings, but anything that hastens the CCP's demise is a step in the right direction. China is on the decline, the facade of indefinite growth is evaporating.

  6. Tbh they will just let inflation run wild. This happened in the 80s and 90s and 00s but because the culture in China most people will just think they didn’t work hard enough to catch up rather than they are tanking the losses.

  7. Patrick, Patrick no way this can be resolved in a normal situation, due to China's whole system being basic on a Ponzi debt system.
    After doing extensive research, China's system is caught in a domino effect.
    See, China just announced its steel industry is crashing. China has already overbuilt 90 million apartments with 45 million empty.
    The high-speed train that doesn't generate any revenue and too many half-empty skyscrapers that are 60% full.

    Trillion-dollar investment in the Beland Road Project and all the countries can't pay.

  8. There's also a problem with oversupply in the housing market, IMO. There's just so much empty property that it's basically priceless, i mean worthless. All those people who believed in the RE market will soon find that there are no clients they can sell all that property to. And that is what the biggest timebomb is. So, what we're seeing now might be just the tip of the iceberg and i have no idea how the gov would ever deal with the basic oversupply problem. The prices will have to come crashing down to market levels, and those levels are far lower than mortgages on them, and we all know what that means for the banks and the whole economic system…

  9. Sorry to disappoint you, Patrick. No matter how much you want this to be false, but China is not collapsing, and this “financial crisis” can be contained, because China controls its financial system. You should direct your attention, if you are so carefree in your retirement, to the US economy, which is a bubble and taking advantage of the world via global reserve currency status.

  10. One thing we can be almost sure about is that Chinese people are extremely docile and resilient. They will literally work themselves to death to pay off the unbearably expensive property, because jumping off the roof does not cancel the debt (their children still have to pay for it). You are literally not allowed to go bankrupt. Those Henan protesters and mortgage deniers will always be the small minority. The "lie flat" people are minority, otherwise why is wages still so low when apparently nobody wants to work? Most people just don't want "get into trouble" as the government has more than enough means to make their lives miserable should they step out of their bounds.

    So in the end, the people of China will be the ones who bear the cost of deflating this bubble. If CCP refuses to hand out stimulus payments to people who are forced into lock downs, why should they spend a penny bailing the people out?

  11. Great presentation, as always Patrick. Something seriously need to change around the world with the housing market, it´s just out of control, the greedy practice, the crazy prices….It´s really sad, because poor people are simply not allowed to have their own property, because the ones that have enough money (and big grous, off course) are always pumping the prices up. At some point, no one will be able to afford, THEN something will change…..All we need is people fighting together instead of each other.

  12. 7 Behold, he changed their hearts; yea, he awakened them out of a deep sleep, and they awoke unto God. Behold, they were in the midst of darkness; nevertheless, their souls were illuminated by the light of the everlasting word; yea, they were encircled about by the bands of death, and the chains of hell, and an everlasting destruction did await them, And now I ask of you, my brethren, were they destroyed? Behold, I say unto you, Nay, they were not. China/Customers.

Leave a Reply

Your email address will not be published. Required fields are marked *