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Scandal-Hit Chinese Banks’ Customers Win New Repayments

Financial regulators in Henan province said on Thursday that individuals with deposits of up to 100,000 yuan ($14,800) will be repaid


Chinese police have arrested 234 people over a major banking scandal in Henan province, a local security bureau said on Tuesday.
Financial regulators in Henan said on Tuesday they would launch another round of repayments to the banks' customers. This shot from July 10 shows people at a big protest in Zhengzhou over the freezing of their deposits by the rural-based banks. File video screengrab: Reuters.

 

Customers of four rural Chinese banks that froze depositors’ accounts, sparking angry protests, will receive a second round of repayments from next week, authorities said.

Financial regulators in Henan province said on Thursday that individuals with deposits of up to 100,000 yuan ($14,800) will be repaid.

Henan authorities started the first round of repayments on July 15, following widespread protests from angry depositors whose funds have been frozen by the four lenders.

The Henan branch of the China Banking and Insurance Regulatory Commission and the provincial financial bureau issued a joint statement announcing the repayment round.

The Chinese banks’ scandal spooked depositors and could risk broader contagion, rating agency S&P Global warned last week.

Up to 400,000 customers were unable to withdraw money from the four banks in Henan and two other banks in Anhui province that also froze assets held by depositors.

 

  • Reuters, with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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