Chinese regulators have promised to repay more victims of one of the country’s largest bank scandals after hundreds of thousands of customers have been left unfunded and triggered rare large-scale protests. Did.

China’s regional banking sector has been hit hard by Beijing’s efforts to curb the real estate bubble and rising debt amid financial crackdowns that have upset the world’s second-largest economy.

Four banks in Henan province frozen cash withdrawals in mid-April, trapping billions of yuan in savings and causing sporadic demonstrations as regulators scrutinized allegations of mismanagement.

Authorities later nominated these companies and another local bank in nearby Anhui province for being involved in a plan to deceive investors, promising victims to regain their money.

“The Henan New Fortune Group operated banks in five villages in Henan and Anhui to illegally absorb and occupy public funds and conceal illegal activities,” said an unnamed China Bank Insurance Regulator. A representative of the group told the state media on Sunday. Police investigation.

“The next step is to start prepaid work for customers over 50,000 yuan (deposit).”

According to analysts, the Henan bank scandal has hit unprecedented public confidence in China’s financial system due to the scale and scale of fraud.

Chinese authorities are desperate to avoid turmoil in social stability just months away from the ruling Communist Party’s main parliament.

According to eyewitness testimonies submitted to AFP and verified photos on social media, a mass demonstration on July 10 in Zhengzhou, the capital of Henan Province, was severely subdued and police pushed the demonstrators into a bus and beat them. ..

Shortly thereafter, banking regulators in Henan Province said customers with deposits of less than 50,000 yuan ($ 7,500) would be repaid from Friday.

However, according to a message confirmed by AFP, only a handful of WeChat groups, including hundreds of depositors, reported receiving funds successfully.

According to local media, some customers reported receiving their deposits on Friday, while others complained that they couldn’t register due to a bug in the specified mobile app.

The repayment came from some of the seized assets of the Henan New Fortune Group, which were accused by police of operating the bank, state broadcaster CCTV reported last week.

Regulators said depositors would be paid in one lump sum, but did not announce a specific time frame for repayment of accounts with funds of 50,000 yuan or more.

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