Chinese authorities have arrested members of a ‘criminal gang’ who took control of local banks. The criminals were accused of financial corruption which the local government failed to control leading to clashes between customers and authorities which later turned violent.
China’s rural banking sector has suffered since Beijing took steps to control a property bubble and spiraling debt by launching a financial crackdown which has affected its economy.
Following the clashes, four banks in Henan were forced to freeze all cash withdrawals since April leaving several thousands penniless which led to demonstrations.
Zhengzhou on Sunday witnessed mass protests outside the People’s Bank of China in Henan. Hundreds of protesters gathered to voice their anger towards the government.
“We came today and wanted to get our savings back, because I have elderly people and children at home, and the inability to withdraw savings has seriously affected my life,” a woman said.
The protesters unfurled banners accusing local officials and police of corruption and demanded that bigwigs in Beijing mete severe punishment to those who are responsible, news agency AFP reported.
Protesters were also subjected to brutality by unidentified miscreants. Some protesters claimed that gangsters beat them up, helping police to subdue the protesters. Some protesters sustained injuries.
The protesters also claimed that local banks colluded with gangsters to suppress rallies. It was also said that provincial authorities abused China’s health code to bar protesters from public spaces last month.
The gang arrested by the police were accused of illegally transferring millions of money owned by bank account holders through fictitious loans and using their shareholdings.
It must be noted that millions of customers of three regional banks – Yu Zhou Xin Min Sheng Village Bank, Shangcai Huimin County Bank and Zhecheng Huanghuai Community Bank- in China were prevented from withdrawing total of 10 billion yuan equivalent to $1.49 billion in deposits since April.
It was found out that the gang was plotting to effectively take over several local banks since 2011.
Henan province’s banking and insurance regulator assured customers that they will ‘protect the legal rights and interests of the broader public’.
This, however, does not challenge the fact that protests continue to grow in China – an unthinkable act since Chinese citizens are not allowed to criticize their government.
The protesters also found sympathy from citizens on Weibo. But the Chinese government quickly disabled the hashtag related to police brutality in Henan.
(with inputs from Nikkei Asia and AFP)
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