Savings Turned Into “Investment Products” As Property Collapse Widens

Social unrest is on the rise in China, triggered by a range of financial services related issues, across deposits and mortgages, with ordinary Chinese people are publicly revolting, with rapidly escalating boycotts on mortgage payments spread across at least 301 projects in about 91 cities.

In addition there were large-scale protests in the Henan province by bank depositors over the release of their frozen funds over what may be the nation’s biggest-ever bank scam.

The incident comes in the light of the Henan branch of the Bank of China declaring that people’s savings in their branch are ‘investment products’ and can’t be withdrawn. Authorities say they started repaying some victims last week even as a police investigation is still ongoing. But Chinese state media has not posted anything about the repayments.

The Henan bank scandal, in which 40 billion yuan (US$6 billion) in deposits have disappeared, is more than a Chinese banking crisis – it is a political crisis that could undermine people’s confidence in local governance and also other local banks, according to analysts.

The blow to public confidence in financial stability and the government’s ability to protect their legitimate interests could be a long-term issue, unless the central government can find ways to promptly repay the depositors, they say.

Police in central China’s Henan province have arrested a number of suspects allegedly involved in a “complicated” cash crisis involving rural banks, while investigators continue to search for the whereabouts of customers’ missing deposits.

The arrests come after months of protests from anguished savers, who have been unable to withdraw cash from their accounts at small rural banks in Henan and Anhui provinces.

The case has highlighted the vulnerability of lenders in China’s less-developed regions as the risk of recession grows in the world’s second largest economy.

The Chinese Communist Party’s tanks on Wednesday rolled on the streets to scare Henan bank protestors amid large-scale protests in the province by bank depositors over the release of frozen funds.

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  1. The money was stolen from these people by local officials and other connected individuals and tuned into Real estate in the western world.

  2. Order out of chaos. And out of this catastrophic mess the evil "central bankers", will ride in like white knights and save us all with universal basic income, and the chains and shackles that come with it

  3. As the CPC can print as much money as it wants, and nobody can say/do anything about it, any talk of a financial collapse in China is essentially meaningless because the government can just print its way out of any trouble.

  4. Martin check nzs gang shootings and car ram raids from kids as young as 12. People aren’t happy. The rich and poor divide . The poor don’t give a shit. Why would you if the only options because of such high house prices and rental prices is stay poor or leave your country. Which I’ve many times heard home owners suggest moaners should leave the country and theyll be replaced. Lovely. There is very good figures on people leaving nz for good or rental propertys . But landlords definitely love high immigration

  5. This is why I own gold and silver I don’t give a /:/- if the price goes down its out of the system and in MY possession

  6. The Chinese really have come a long way under Xi, haven't they? All the way from financial success to financial crisis.
    Please put your hands together for the leader who learnt nothing from the failures of others.

  7. This is what happens with government owned banks Robbie!
    Tianamen Square was all over CCP China and tens of thousands were killed.
    No one in communist China is allowed to know this atrocity.
    Sure it'll happen again, that's why no-one is allowed to know.
    'Lei's Real Talk' is an excellent China YT channel by an analyst in S'pore.

  8. Thanks on the street to scare protesters just wanting their money. Makes a mockery of the “socialist” née communist government supposedly being “the people’s republic”. The Chinese leaders are just like any others in the world. They’re only there for themselves, power, and that especially applies to Xi Jinping and his cronies. Would be hard to take them seriously if not for their
    large army and nukes. But then I guess that’s why countries have the, – to compensate for their ineptitude. Bring on deglobalisation inflation a small price to pay.

  9. Councils still screwing people on rates and fees so I don't see any Aussies with a backbone standing up. Aussies will sooner let it go and not fight. Case in point COVID, bloody hero's.

  10. I would hate living in that country even though this country is Guilty of Evil also so would be nice to live in the least Evil country where people are treated like Human's.And have You ever thought about the one billion or so people in china goint to the toilet every day? I mean where does it all go?

  11. Martin, the students walked out peacefully in the early morning of 4 June 1989. There are footages of that.
    Please don't just follow the west narrative.

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