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SCMP: Hundreds more arrested in China’s rural banking scandal

so the funds were frozen, is that why people weren't able to withdraw cash from the bank? News reports make it sound like the bank was operational until the protests began a month ago.

The Chinese police froze all accounts and funds of the bank in June this year. The Chinese govt's announcement made it clear that it was "freezing" rather than "confiscating".

In addition, this is not the first case of illegal fund-raising fraud in China. Although the amount involved in previous cases is not as large as this one, the Chinese govt has never confiscated the funds of these cases.

Moreover, in each case, the principal of all the victims was eventually returned, but the repayment time was usually more than ten years.

After the police froze the funds of these banks in June this year, there were demonstrations and protests. After the investigation, the police found that only a dozen demonstrators were real depositors, and the remaining 200 were construction workers employed by these criminals from a construction site. The boss of these construction workers have also been arrested by the police.

According to the Convention, China has special departments to recover the transferred funds, and then a full-time lawyer group will arrange and publicize the repayment plans of all victims. Usually, the principal will be returned, but the total repayment time will last for more than ten periods, and the final repayment time will be very long.
 
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more insults more negative rating..I'm good with that trade.:lol:

not regulated you say? then why is an inspector belonging to the "regulatory" agency being investigated. Surely you didn't think through that lie, try harder.

Like I give a damn about your petty bitch move. You're just a source of cheap laugh.

"Risks are more significant at rural lenders as they lack sufficient capability to diversify in terms of geography, industry or clients. Many are involved in unregulated shadow financing, allowing them to circumvent rules capping a lender’s credit exposure."


In this case, China is punishing officials that failed in their duties or collaborated with these illegal schemes. How many American officials got indicted for 2008 financial CDO crisis? Zero. Now crawl back to the retard bush.
 
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What are you blabbering about? These people didn't do their research and bought into investment that turned out to be scams. The CCP is being a saint here offering to return 75-100% of their money. Just proves that the CCP cares alot more about her citizens then western governments.
You said that US corruption was used to teach Chinese investors. So I asked what for? Are there not enough corruption in China? Does not matter if the money is returned or not. I would rather not invest than to invest, got robbed, then have my money returned. So surely there must have been enough corruption in China to alert Chinese investors on NOT to invest in the first place, right?
 
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You said that US corruption was used to teach Chinese investors. So I asked what for? Are there not enough corruption in China? Does not matter if the money is returned or not. I would rather not invest than to invest, got robbed, then have my money returned. So surely there must have been enough corruption in China to alert Chinese investors on NOT to invest in the first place, right?
At least the Chinese govt will punish these corrupt or derelict officials. Moreover, the Chinese govt will try its best to recover the money cheated by the victims. Even if it cannot be recovered, the Chinese govt will eventually repay the principal.

So will the US govt treat those cheated us citizens like this? As far as I know, India swindles Americans 20 billion dollars every year. Has the US govt tried its best to recover this money?
 
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You said that US corruption was used to teach Chinese investors. So I asked what for? Are there not enough corruption in China? Does not matter if the money is returned or not. I would rather not invest than to invest, got robbed, then have my money returned. So surely there must have been enough corruption in China to alert Chinese investors on NOT to invest in the first place, right?
first, I've never said anything about US corruption.
second, no one cares if you want to invest or not. Chinese investors know to go with state banks or reputable funds and not some shady community banks. The dumb dumbs that got scammed here were greedy and didn't do any research.
 
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Like I give a damn about your petty bitch move. You're just a source of cheap laugh.

"Risks are more significant at rural lenders as they lack sufficient capability to diversify in terms of geography, industry or clients. Many are involved in unregulated shadow financing, allowing them to circumvent rules capping a lender’s credit exposure."


In this case, China is punishing officials that failed in their duties or collaborated with these illegal schemes. How many American officials got indicted for 2008 financial CDO crisis? Zero. Now crawl back to the retard bush.

we're aren't talking about unregulated financing (lending) - an activity. we're talking about unregulated financial institutions. Particularly banks that have nationwide operations with a 12-13% share of the total Chinese banking system asset. Further, Banking Supervision Law (Article 2) establishes supervisory authority over rural banks and any institute that takes deposits from the general public.

Like I said before try harder. :lol:

The Banking Supervision Law (Article 2), for the purpose of determining the scope of application of banking supervision, establishes that CBRC is responsible for the regulation and supervision of banking institutions, defining banking institutions as financial institutions established in China that take deposits from the general public, including,commercial banks, urban credit cooperatives and rural credit cooperatives, in addition to policy banks (which are not-deposit takers).


The five banks involved — Yuzhou Xinminsheng Village Bank, Zhecheng Huanghuai Community Bank, Shangcai Huimin County Bank, New Oriental County Bank of Kaifeng, and Anhui Guzhen Xinhuaihe Village Bank — are all village banks, originally set up to provide financing to local communities. But in recent years, many of these rural banks have expanded their reach nationwide



 
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we're aren't talking about unregulated financing (lending) - an activity. we're talking about unregulated financial institutions. Particularly banks that have nationwide operations with a 12-13% share of the total Chinese banking system asset. Further, Banking Supervision Law (Article 2) establishes supervisory authority over rural banks and any institute that takes deposits from the general public.

Like I said before try harder. :lol:

The Banking Supervision Law (Article 2), for the purpose of determining the scope of application of banking supervision, establishes that CBRC is responsible for the regulation and supervision of banking institutions, defining banking institutions as financial institutions established in China that take deposits from the general public, including,commercial banks, urban credit cooperatives and rural credit cooperatives, in addition to policy banks (which are not-deposit takers).


The five banks involved — Yuzhou Xinminsheng Village Bank, Zhecheng Huanghuai Community Bank, Shangcai Huimin County Bank, New Oriental County Bank of Kaifeng, and Anhui Guzhen Xinhuaihe Village Bank — are all village banks, originally set up to provide financing to local communities. But in recent years, many of these rural banks have expanded their reach nationwide



Do you mean that the Chinese govt should not allow private individuals to run rural banks?
 
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Do you mean that the Chinese govt should not allow private individuals to run rural banks?

No I didn't say that, I am establishing the fact that Rural banks are not unregulated as some claim. Article 2 of the Banking Supervision Law clearly states all institutes that receive general public deposits is regulated by the Banking Regulatory Authority this includes overseas Chinese banks.

Article 2 The banking regulatory authority under the State Council shall be responsible for the regulation of and supervision over the financial institutions of the banking industry and their business operations throughout the country.

For purposes of this law, the financial institutions of the banking industry refer to the financial institutions established in the People’s Republic of China that receive deposits from the general public, including, among others, commercial banks, urban credit cooperatives and rural credit cooperatives, and policy banks.

The provisions of this Law pertaining to the regulation of and supervision over the financial institutions of the banking industry are applicable to the regulation and supervision of the financial asset management companies, trust and investment corporations, finance companies and financial leasing companies established in the territory of the People’s Republic of China and other financial institutions established with the approval of the banking regulatory authority under the State Council.

The banking regulatory authority under the State Council shall, in accordance with the relevant provisions of this Law, regulate and supervise the financial institutions that, upon its approval, are established outside the People’s Republic of China, as well as the business operations conducted abroad by the financial institutions mentioned in the preceding two paragraphs.

 
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