After Henan, depositors in Shenzhen and Shanghai also face difficulty withdrawing money. The health of regional lenders spurs public concern.
According to a resident in Shenzhen, he lined up at 6 in the morning in front of the Bank of China to get the ticket. Just 1 hour after opening at 9 am, the bank said there were no tickets left and they wouldn’t serve any new customers.
Hao, from Longgang District, said, “It’s been two or three months. I once went to several agricultural banks, but they didn’t have any cash. I saw some other depositors couldn’t get cash either.”
Similar situation in Shanghai, depositors queued up in front of many banks after the lockdown was lifted and couldn’t get a ticket to withdraw their money. Wang from Pudong District said he couldn’t withdraw money; too many people went to the bank, the elderly also rushed to line up, and the bank ran out of money. Jennifer Zeng has reported major issues with withdrawing cash from banks in Shanghai in recent days. She said, “All banks in Shanghai have restricted depositors from withdrawing money… A bank run is about to sweep China,”. Another tweet of video footage showing a crowd queued in front of a bank, “The bank card system is locked, and these people are here to unlock it. Massive runs are coming.”
The same story in Dandong, Liaoning, where residents struggled to get cash. A Reuters report detailed that worried depositors gathered at the Yingkou Coastal Bank’s branches seeking information about their savings. Large amounts of money were piled behind counters at several of its offices.
It started earlier this month in Henan. Four hundred thousand depositors were affected, with a total of nearly 6 billion dollars frozen. Among them, one thousand three hundred seventeen victims had been given the red codes, tagging them as a health risk under China’s strict zero-Covid policy when they tried to gather for protest.
According to Wen Zhao, a We-media person and current affairs commentator, “After the issue with banks in Henan, the 40 billion yuan savings disappeared, and the Political Bureau of the Central Committee immediately violated the rules and held a meeting in the middle of a month, the content was to urge financial institutions to rectify. I am afraid that China’s financial system has a big problem.” He added, “The government has misappropriated residents’ savings for the epidemic prevention. It has been 3 years, and government authorities have fallen into a deep financial difficulty”.
The Shanghai headquarters of the People’s Bank of China said that on June 20, the cash transfers in the first half of June alone were nearly four times the same period last year.
The financial website “Asian Markets” (12th) recently released an analysis article, pointing out that China is brewing a bank run crisis and it’s being ignored by the world”.