Chinese savers will get a portion of their money after mass protests

Chinese bank savings who were prevented from it Withdrawing their money they will be able to get a part of their money back as of Friday, The organizers announced, following a mass protest at the weekend.

The banking sector in rural China is being hit hard by the central government’s policy of containing the housing bubble and the indebtedness of the world’s second largest economy.

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

The decision surprised thousands of savers and sparked sporadic protests.

One of the biggest events on Sunday took place outside a local branch of China’s central bank in Zhengzhou, the capital of Henan, 600 km southwest of Beijing.

student savers b your money He accused the authorities of inaction and even collusion with banks.

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

On Monday night, Henan Province’s banking and insurance regulator announced that some savers would be able to get their money back.

Doubt

The authority said in a statement that customers with deposits less than 50,000 yuan (about $7,400) will receive their money from Friday. Payment arrangements for others will be announced at a later time.

“Money associated with Illegal or criminal (activities) “It will not be refunded at this time,” the note added.

On Sunday, the police announced the arrest of people for allegedly belonging to a criminal organization, accusing them of controlling several local banks since 2011 and making illegal transfers through fake loans.

However, most Affected savers were skeptical Tuesday on the organizer’s announcement.

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

Henan banks are part of a larger group of smaller banks affected by 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 often more tolerant of economic and financial protests than political ones.

Last month, Henan authorities came under heavy criticism after allegedly tampering with health passports to prevent affected savers from attending the protests.

A health passport is necessary in China to reach the vast majority of buildings, Shopping malls, public places and some transportation.

“Despite the few assets involved” in the Henan case, ANZ Bank noted in a note, “the social repercussions of the incident could be significant if not addressed properly.”