In a recent development in China, the authorities ruthlessly crushed a peaceful demonstration by hundreds of depositors seeking their life savings back from banks that are experiencing a worsening liquidity crisis. The incident took place on Sunday, July 10, when a large number of protesters had gathered at the entrance to a branch of China’s central bank in Zhengzhou in Henan Province. The demonstrators were reportedly among thousands of people who opened accounts at six rural banks in Henan and the nearby province of Anhui that provided higher interest rates.
Following media reports that the CEO of the bank’s parent firm was absconding and wanted for financial crimes, the people subsequently discovered they were unable to withdraw their money. “We came to get our savings back, because I have elderly people and children at home. But the inability to withdraw savings has seriously affected my life,” said Zhang, a resident of Shandong province, the Associated Press (AP) reported. According to the report, the demonstrators gathered early on Sunday in front of the People’s Bank of China building in Zhengzhou. However, the street leading to the site was blocked by the local police by 8 am.
Security forces attacked protesters to disperse them
Along with the cops in uniform, there were also groups of men wearing plain T-shirts. When a banking regulator and a representative of the local government arrived, the crowd shouted down their attempts to address them. The demonstrators were then informed by the police that they were an unlawful assembly and would be arrested and fined if they do not disperse. Meanwhile, around 10 am, the men in T-shirts attacked the crowd and scattered them.
Henan banking regulators claim steps are being taken to solve issue
Yang, another protester, stated that he was hit by security forces. “Although repeated protests and demonstrations don’t necessarily have a big impact, I think it is still helpful if more people get to know about us, and understand or sympathize with us. Each time you do it, you might make a difference. Although you will get hit, they can’t really do anything to you,” he told the AP. Meanwhile, Henan banking regulators announced later in the day that four of the banks’ customer funds are being verified to solve the issue.