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There is a massive mass protest against the multi-crore fraud that took place in Shengzhou city of Henan province. The protests are due to lack of money. This kind of financial crisis has been going on for almost two months. Accounts of many were seized, frozen and buried.
Videos of people taking to the streets have also surfaced. Experts point out that the scenes and situations coming out of China are very similar to Sri Lanka. Learn more about the event.
Why protest?
Four local banks in China’s central Henan province since April
Millions of dollars in their investments were frozen. This is the cause of the protests. This was causing the economic crisis caused by the covid epidemic and the subsequent lockdown to intensify. This has threatened the livelihood of tens of thousands of customers.
According to Asia Market Report, six banks have frozen the accounts of such investors. Protests against this have been going on vigorously for the last two months. Agitated investors staged several demonstrations in Zhengzhou, the provincial capital of Henan. At the same time, the Communist regime in China is not ready to respond to this.
Tens of thousands of people took to the streets on Sunday, July 10. The protest was held in front of China’s central bank. It is reported that this will be the biggest crisis China has seen since Covid.
Videos of tens of thousands of protesters taking to the streets have gone viral on social media. People have taken to the streets chanting slogans against the corruption of the Henan local government.
In the videos, the protesters are seen throwing plastic bottles and other things as they approach the security personnel.
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Frozen deposits
According to Chinese media reports, about $1.5 billion in investments have been frozen. Meanwhile, authorities claim that three out of four banks are being investigated.
Banks are telling customers that the freeze is part of an overhaul of their internal systems. However, it is also noteworthy that none of the banks responded to emails and phone calls seeking comment.
At the same time, the international news agency AFP reports citing Suchang City Police that a criminal gang has been arrested for taking control of local banks and causing a huge financial burden.
According to the report, the reason for the crisis is the illegal financial transactions carried out by the arrested criminal group since 2011. At the same time, the banking and insurance regulator here has stated that efforts to resolve the financial crisis are continuing.
Will Xi Jinping affect the administration?
It remains to be seen whether the crisis and agitations raging in China will shake the chair of Xi Jinping, who is currently ruling the country. In a heavily regulated country, there is little freedom to protest like this. It is being discussed that people have gathered in spite of it. At the same time, protests are organized against individual institutions and their policies.
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The protest by bank depositors comes at a time of political crisis for the ruling Communist Party. It is important to know whether the President himself will call a meeting for this purpose. It is also estimated that it may lead to severe political embarrassment for the current communist government.
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