AP

China bank customers to get deposits back after protests

Jul 12, 2022, 2:40 AM | Updated: 2:46 am

People hold banners and chant slogans stage a protest at the entrance to a branch of China's centra...

People hold banners and chant slogans stage a protest at the entrance to a branch of China's central bank in Zhengzhou in central China's Henan Province on July 10, 2022. A large crowd of angry Chinese bank depositors faced off with police Sunday, some reportedly injured as they were roughly taken away, in a case that has drawn attention because of earlier attempts to use a COVID-19 tracking app to prevent them from mobilising. (AP Photo)

(AP Photo)

TAIPEI, Taiwan (AP) — Financial regulators in central China’s Henan and Anhui provinces have promised to give some bank customers some of their deposits back after a protest over their frozen accounts Sunday turned violent.

In statements issued late Monday, officials said customers with deposits of 50,000 yuan (about $7,400) or less would be reimbursed. They said others with larger bank balances would get their money back at a later, unspecified date.

The bank protests drew wide attention because angry depositors who tried to go to Zhengzhou in Henan to try to get their money back from the six financially troubled rural banks were stopped from traveling by a health app on their cellphones. On Sunday, they staged their largest protest yet, which police and plainclothes security broke up with force.

The protesters are among thousands of customers who opened accounts at the banks in Henan and neighboring Anhui province that offered relatively high interest rates. They later found they could not make withdrawals after media reports that the head of the banks’ parent company was wanted for financial crimes.

The announcement by regulators was received with skepticism by customers who have been organizing protests online and offline since April to try to get their money back.

“This does not actually solve the problem,” said Xu Zhihao, a bank customer who didn’t take part in the protest Sunday.

The People’s Bank of China, the country’s central bank, guarantees deposits of customers up to 500,000 yuan ($74,000), but that won’t be enough to cover some peoples’ losses.

One protester, who gave only her last name, Ding, said she and her mother had 800,000 yuan ($119,000) in savings deposits at multiple banks.

“They made this announcement because we put our lives on the line. This less than 50,000 yuan isn’t what we are owed. It’s more a payment to keep social stability,” said Ding, who declined to give her full name out of fear of reprisal. She said and her husband were hit by plainclothes security staff during a protest Sunday, when several people were injured.

Multiple protesters told the AP that some people were hospitalized after being hurt when police and plainclothes security officers used force to disperse the protesters, though most of the injuries were scrapes or cuts.

The bank customers started their accounts online through financial platforms such as JD Digits, which is owned by e-commerce giant JD.com, drawn by offers of higher interest rates, such as five-year fixed deposit accounts paying an interest rate of just over 4%.

When they realized they couldn’t withdraw their money, they tried to contact the banks, the local Banking and Insurance Regulatory Commission and the central bank.

When that failed, they set out to protest at the China Banking and Insurance Regulatory Commission’s provincial headquarters in Henan’s capital, Zhengzhou. Sunday’s protest was the largest so far, drawing hundreds of people.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

deadly heat wave last summer...

Associated Press

After a deadly heat wave last summer, metro Phoenix is changing tactics

Fresh memories of the deadly heat wave last summer have led Arizona authorities to launch new tactics ahead of summer 2024.

2 days ago

A Yuma man has been arrested for allegedly starting a wildfire in a national wildlife preserve near...

Associated Press

Man accused of starting wildfire in national wildlife preserve in Yuma

A Yuma man has been arrested for allegedly starting a wildfire in a national wildlife preserve near the California border.

3 days ago

Colorado River settlement center of new Navajo Nation push...

Associated Press

Tribes say their future is at stake as they push for Congress to consider Colorado River settlement

Navajo officials are celebrating the signing of legislation outlining a proposed Colorado River settlement that would ensure water rights.

6 days ago

Arizona doctors California abortions...

Associated Press

Arizona doctors can come to California to perform abortions under new law signed by Gov. Newsom

Arizona doctors can temporarily come to California to perform abortions for their patients under a new law signed by Gov. Gavin Newsom.

7 days ago

Father convicted of first-degree murder in northern Arizona...

Associated Press

Arizona man convicted of first-degree murder in starvation death of 6-year-old son

A northern Arizona father was convicted of first-degree murder Thursday in the 2020 starvation death of his 6-year-old son.

7 days ago

Former President Donald Trump sits in a courtroom next to his lawyer Todd Blanche before the start ...

Associated Press

Trump hush money trial enters new phase after defense rests without testimony from former president

Donald Trump's hush money trial is now closer to the moment when the jury will begin deciding the former president's fate.

9 days ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

China bank customers to get deposits back after protests