Reashot Xigwin
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By Laura He, CNN
4 minute read
Updated 5:31 AM EDT, Thu October 12, 2023
China banking scandal is affecting thousands of people
04:55 - Source: CNN
Hong KongCNN —
Fears that Evergrande’s debt woes are spreading into the wider financial industry have sparked a run on a regional bank in northern China, multiple state media outlets have reported.
Depositors lined up at the bank in Cangzhou, in Hebei province, to withdraw their money, according to photos and videos circulated online this week, prompting an appeal for calm by officials.
Police in Cangzhou have arrested “many people” suspected of spreading rumors that the bank was suffering a cash crunch because of its exposure to Evergrande, Yicai, a state-owned media outlet, reported on Wednesday, citing an officer deployed at the bank.
Posts on Chinese social media reviewed by CNN claimed that the Bank of Cangzhou had lent billions of yuan in loans to Evergrande, the indebted property giant that defaulted on its debt in 2021 and is struggling to survive.
Last month, Evergrande said its founder and chairman Xu Jiayin had been detained on suspicion of crimes, sparking fears that the company’s multi billion-dollar restructuring plan might be in peril, which could lead to a forced liquidation of the firm and huge losses for its creditors.
The bank has a statement from the city government posted at its entrance, assuring the public that their deposits are safe, Yicai said.
“[We urge] financial consumers to make rational judgments and to avoid losing interest on your deposits due to rumors,” according to a photo of the statement posted by the media outlet.
The statement appeared to be signed and stamped by the Cangzhou government on Monday. The bank’s operations are “sound” and its depositors are protected by the national deposit insurance scheme, it said.
It was unclear how many depositors took part in the bank run or how much they withdrew.
https://edition.cnn.com/2022/06/23/economy/china-bank-runs-protests-intl-mic-hnk/index.html
Established in 1998, Bank of Cangzhou is majority controlled by the city’s treasury department and has branches across the prefecture, which is located about 100 miles from Beijing. The lender has about 3,000 employees and its total assets stood at 246.5 billion yuan ($34 billion) at the end of September.
CNN has reached out to the bank, the police and the city government for comment.
read the rest here:
4 minute read
Updated 5:31 AM EDT, Thu October 12, 2023
China banking scandal is affecting thousands of people
04:55 - Source: CNN
Hong KongCNN —
Fears that Evergrande’s debt woes are spreading into the wider financial industry have sparked a run on a regional bank in northern China, multiple state media outlets have reported.
Depositors lined up at the bank in Cangzhou, in Hebei province, to withdraw their money, according to photos and videos circulated online this week, prompting an appeal for calm by officials.
Police in Cangzhou have arrested “many people” suspected of spreading rumors that the bank was suffering a cash crunch because of its exposure to Evergrande, Yicai, a state-owned media outlet, reported on Wednesday, citing an officer deployed at the bank.
Posts on Chinese social media reviewed by CNN claimed that the Bank of Cangzhou had lent billions of yuan in loans to Evergrande, the indebted property giant that defaulted on its debt in 2021 and is struggling to survive.
Last month, Evergrande said its founder and chairman Xu Jiayin had been detained on suspicion of crimes, sparking fears that the company’s multi billion-dollar restructuring plan might be in peril, which could lead to a forced liquidation of the firm and huge losses for its creditors.
The bank has a statement from the city government posted at its entrance, assuring the public that their deposits are safe, Yicai said.
“[We urge] financial consumers to make rational judgments and to avoid losing interest on your deposits due to rumors,” according to a photo of the statement posted by the media outlet.
The statement appeared to be signed and stamped by the Cangzhou government on Monday. The bank’s operations are “sound” and its depositors are protected by the national deposit insurance scheme, it said.
It was unclear how many depositors took part in the bank run or how much they withdrew.
https://edition.cnn.com/2022/06/23/economy/china-bank-runs-protests-intl-mic-hnk/index.html
Established in 1998, Bank of Cangzhou is majority controlled by the city’s treasury department and has branches across the prefecture, which is located about 100 miles from Beijing. The lender has about 3,000 employees and its total assets stood at 246.5 billion yuan ($34 billion) at the end of September.
CNN has reached out to the bank, the police and the city government for comment.
read the rest here:
