Desperate Victims of Chinese Bank Scam Protest on New Year’s Day

Seeking a lifetime of savings, protestors meet with police brutality

People hold banners and chant slogans at a protest at the entrance to a branch of China's central bank in Zhengzhou in central China's Henan Province, on July 10, 2022. Yang/AP Photo

Victims of a Chinese bank scam braved frigid temperatures on New Year’s Day to demand justice—and their savings—after authorities froze their savings accounts months ago.  The protest capped months of frustration for rural account holders who were snared by the scam. In response, protesters encountered brutal treatment and arrest at the hands of Chinese police, and many were reported missing after the demonstration.

Many of the protesters have been unable to access their savings for over nine months. In April of 2022, authorities froze the accounts, with deposits worth millions, at rural banks in central China’s Henan Province.

At least 400,000 bank customers had access restrictions placed on their accounts on April 19, involving an estimated total of $5.93 billion.

Said to Be China’s Biggest Ever Financial Scam

According to police, a criminal gang had taken control of the banks, luring depositors with promises of annual returns as high as 18 percent. Allegedly, the suspects controlled several banks through a group company, using third-party financial product platforms and their own firm to collect deposits and sell financial products. They then made fictitious loans to illegally transfer the funds.

The banking scandal is believed to be one of China’s biggest ever financial scams.  Over the next few months, protests erupted in Zhengzhou, Henan’s capital, as demonstrators demanded their money back, but their pleas appeared to fall on deaf ears.

Finally, on July 10, a peaceful demonstration of more than 1,000 protesters made headlines after it was crushed violently by police and security personnel.

Official Response Following Protests

Following the protest, Henan’s financial regulator said depositors would be refunded.

Under the repayment plan, refunds would be made to depositors with a combined deposit of less than 50,000 yuan (about $7,410) on July 15, less than 100,000 yuan (about $14,816) on July 25, and less than 150,000 yuan (about $22,196) on Aug. 1.

In early August, officials at China’s Banking and Insurance Regulatory Commission said that authorities had repaid 18.04 billion yuan ($2.68 billion) to 436,000, according to a Reuters report. That accounted for almost 70 percent of depositors and deposits affected.

Moreover, in late August, according to a CNN report, Chinese financial authorities issued a statement saying that they had made significant progress in recovering losses from the scam, and that a final round of repayments would ensure that most of those who lost money had been compensated.

However, according to firsthand accounts from victims of the scam, many depositors were not repaid.

‘Not a Dime’ Received: Protestor

A report in the Chinese language edition of The Epoch Times in late July quoted an anonymous protester, who said many smaller account holders had not received any payments, and added, “I am not optimistic for those larger accounts.”

Among those with larger accounts were some account holders with more than 500,000 yuan ($72,570) in savings, whose funds were now labeled “illegal funds.” Moreover, according to victims, government orders prevented victims from filing lawsuits in these cases.

The report said that the larger savings holders were mostly business men and women engaged in light industrial products, chemicals and textiles in Jiangsu and Zhejiang areas. Their accounts frequently held a lifetime of earnings.  "Depositors with higher amounts won’t receive a dime,” said a victim.

According to the report, as many as three thousand depositors faced losing funds that were labeled “illegal.”

An online video posted in September shows an elderly woman sobbing after being denied access to a lifetime savings of 80,000 yuan ($11,620), which was restricted as “illegal funds.”  The woman and her husband now eke out a living doing heavy labor: breaking concrete, carrying cement, and collecting recyclables.

Protesters at the entrance to a branch of China's central bank in Zhengzhou, in central China's Henan Province, on July 10, 2022. Yang/AP Photo

Met With Intimidation and Violence

Scam victims seeking repayment say they are subject to harassment and brutality from Chinese authorities.

Mr. Shi (a pseudonym) told The Epoch Times he is one of those who lost a large amount of money. He was first arrested at the July protest. Since then, he’s been arrested by police three times, he said.

According to Shi, some protesters faced a long journey to get to Zhengzhou for the Jan. 1 protest. Many of them were intercepted by police at the train station and prevented from traveling to the capital.

Those who made it to Zhengzhou faced further brutality. An online post said that one protestor from Beijing was arrested and beaten by local police after his arrival.

Prior to the protest, police visited some scam victims and attempted to intimidate them into staying home. A video posted online shows local police visiting a depositor and asking her to avoid the protest.

In some cases, the tactics worked. Shi said he did not join the protests because local police had warned him not to go.

The threats were not idle. Shi said that many of the New Year’s Day protesters have gone missing.

The Highway Protest

Temperatures dipped below freezing on the morning of Jan. 1, as protestors gathered in Zhengzhou.

Protesters began walking in single file along the freeway at around 8 a.m., as shown in an online video from The Epoch Times Chinese language edition. They shouted “Henan banks, pay me back,” and held a large banner for passing cars to read. The banner told the sad story: customers of Henan rural banks saw their savings wiped out and never repaid.

The Epoch Times tried to contact those who were reported missing after the protest, but their phones were unanswered. Calls were also made to the local police station at the Jinshui Branch of the Zhengzhou Public Security Bureau, but security bureau staff hung up on the callers.

Lin Cenxin and Xiong Bin contributed to this report.