Multi-Million Dollar Scams At Henan Village Bank Sparking Crises In China

In his grand live broadcasting on June 23, the founder of Whistleblower Movement, Mr. Miles Guo, revealed that banks in northeast China had basically been hollowed out and have become insolvent, the situation of banks in Jiangsu and Zhejiang may be a little bit better. But recent bank runs in Shanghai and Shenzhen have caused panic among the public.

Deposits at Yuzhou Xinminsheng Village Bank, Shangcai Huimin County Bank, Zhecheng Huanghuai Community Bank and New Oriental Country Bank of Kaifeng have been frozen since April 18, sparking a number of protests in the provincial capital of Zhengzhou. 

On Thursday, Xiao Yuanqi, Vice Chairman of the China Banking and Insurance Regulatory Commission (CBIRC), specifically mentioned the incident at a conference held by the Publicity Department of the CPC Central Committee, also known as the Propaganda Department.

The panic caused by the Henan Village Bank incident among the public is still spreading.

In this incident, the troubled banks grew a large number of depositors through online third-party platforms, and the unsuspecting depositors have suffered considerable losses which caused by banks’ crises.

Some netizens began to expose name list of many banks cooperating with on-line third-party platforms on social media platforms such as TikTok and Twitter. They warned that if the trend in public opinion continued, many of these banks would fail and the crisis of small and medium banks would break out intensively.

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Translator: MOS Finance – Sunflower194
Design&editor: HBamboo(昆仑竹)

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