Chinese savers will get part of their money after massive protests

Blocked Chinese bank savers Their refunds can restore part of their funds from Friday, The regulators announced, following a major protest over the weekend.

Rural China’s banking sector has been hit hard by the world’s second-largest economy’s housing bubble and central government policies to restrict credit.

Weakened by the economic recession, Four banks in the central province of Henan All withdrawals have been frozen since mid-April.

The decision caught thousands of savers off guard and sparked sporadic protests.

One of the biggest happened on Sunday outside a local branch of China’s central bank in Zhengzhou, the capital of Henan, about 600 kilometers southwest of Beijing.

Savers have requested Get your money back And accused the authorities of inaction and collusion with the banks.

Some protesters were beaten by unidentified men and forced into police buses, according to witnesses and photos posted on social media and verified by AFP.

On Monday night, the Henan Provincial Bank and Insurance Regulator announced that some savers would be able to get their money back.

Doubt

Customers with deposits of less than 50,000 yuan (about $7,400) will receive their money from Friday, the regulator said in a statement. Payment arrangements for others will be announced later.

“Funding is attached Illegal or criminal (activities) Non-refundable for the time being,” the note added.

Police on Sunday announced the arrest of alleged members of a criminal organization accused of controlling several local banks since 2011 and conducting illegal money transfers through fictitious loans.

However, most Affected savers were skeptical Tuesday about the notification of the regulatory authority.

“Those with more than 50,000 yuan will have to wait forever,” wrote one person in a group chat on the WeChat social network.

Henan banks are part of a larger group of smaller banks suffering from liquidity and management problems.

Demonstrations are rare in China. A country where the authorities impose social stability at any cost.

However, some Chinese do not hesitate to take to the streets despite the risk of arrest. Police are more tolerant of economic and financial protests than political protests.

Last month, Henan authorities came under fire for allegedly tampering with health passports to prevent affected savers from participating in protests.

A health passport is required China, to access most buildings. Shopping malls, public places and some transport.

ANZ Bank noted in a note that despite the “small amount of assets involved” in the Henon case, “the social consequences of the incident could be significant if not properly addressed.”