There is a circulating bank in China and no one talks about it

Nobody is talking about it, but there is a running bank in China. After nearly a million Chinese were unable to access their bank deposits in Henan Province, central China earlier this year, residents of Shanghai, eastern China, Shenzhen, southern China, and Dandong and Jiujiang in central eastern China have reported difficulties trying. Withdraw cash from their bank accounts.

Some banks limit the number of customers served per day, others limit the withdrawal of each customer to no more than 1,000 yuan (about $149), and still others close their branches. ATMs are also empty, which makes it almost impossible in some areas

Bank runs in the world’s second-largest economy have taken place for more than a week, which is unusual in China because most banks are state-run. The first news of the problems leaked around June 12, but so far cases have become widespread and more areas.

Zheng Yongnian, an economic advisor to Chinese leader Xi Jinping, published an article on June 1, stressing that the Chinese economy faces serious challenges, including more than half of foreign investment leaving China and Chinese private companies struggling to survive due to the supply chain crisis. and lack of liquidity. Even a global recession at the gates, with lower exports expected, isn’t helping. Moreover, there is still the ongoing real estate crisis in which a lot of financial resources have been invested.

The crisis has hit several cities in Shenzhen, as well as in the north, such as Dandong. Among the institutions hit hardest is the Agricultural Bank of China, to which belong many branches that no longer return funds. There are lines that may take several days to withdraw funds. Even some online banks, which are widely used in China, such as Alipay, have limited withdrawals for citizens, and there are cases when people who made large payments saw them practically freeze for several years.

The Chinese central bank continues to reduce the reserve ratio of banks, which should usually provide much more liquidity

Despite this, withdrawals from banks multiply. Because? Oddly enough, no one in the West asks this.

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