[The Epoch Times, July 16, 2022](Reported by The Epoch Times reporter Li Jing) The wave of loan suspension in China has spread to 20 provinces, and the financial industry has been severely impacted. Recently, China’s banking industry has been exposed by financial practitioners one after another, and “Huaxing Bank exploded, unable to withdraw money” is the latest incident. At present, the whistleblower has been arrested by the police.
Due to the “explosion” of Chinese real estate developers, their projects in many parts of the country have been suspended, and the owners of unfinished real estate in various places are in a desperate situation. Owners questioned the authorities’ oversight and pointed the finger at the bank, and forcibly stopped loan repayments until the related projects were fully reopened.
According to a report by “First Finance and Economics” on the 14th, according to rough statistics, there are currently about 150 real estate supply cuts nationwide, covering about 20 provinces including Henan, Hunan, Jiangxi, Hebei, Guangxi, Shandong and nearly 70 cities ( Area).
Affected by this, A-share bank stocks continued to plummet, with nearly 700 billion (RMB, the same below) evaporated in market value in just ten trading days.
Financial institutions such as Bank of China, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Postal Savings Bank of China, Bank of Communications, Ping An Bank, China Everbright Bank, Industrial Bank, Minsheng Bank, China Merchants Bank, Bank of Nanjing, Bank of Jiangsu, etc. They all claim that “risks are manageable”.
On the afternoon of July 14, a WeChat chat record related to Huaxing Bank went viral. The content showed that “Huaxing Bank exploded and could not withdraw money”, “90% of the funds flowed into real estate and could not be recovered” and other related content, with pictures. .
Due to the superimposed influence of thunderstorms in some village and town banks and “loan suspension” incidents in many places, the effect of the above-mentioned remarks has expanded rapidly.
On the evening of the 14th, Huaxing Bank issued an emergency statement, saying that the bank’s operations and management activities were normal. On the afternoon of the 15th, Huaxing Bank claimed that the bank had reported the case to the police. Subsequently, the Nanshan Branch of the Shenzhen Public Security Bureau issued an Administrative Punishment Decision to Chen, who was detained by the police for 15 days for “spreading false information”.
The “Decision on Administrative Punishment” shows that the offender Chen’s work unit is a top brokerage, and his education is a master’s degree. According to Jiemian News, Chen is a financial practitioner and works in a business department of Guotai Junan Securities as an investment consultant.
Official website information shows that Guangdong Huaxing Bank is a mixed-ownership commercial bank established in August 2011. The industry nature of its shareholders covers private enterprises, joint-stock banks, and large state-owned enterprises. Industry types include finance and treasury, real estate and other industries. At present, 11 first-tier branches have been set up in Guangzhou, Shenzhen and other cities.
It is worth noting that the predecessor of Guangdong Huaxing Bank was Shantou City Commercial Bank, which suffered a payment crisis due to a series of operating problems such as high interest rates, misappropriation of funds and off-book loans. In 2001, Shantou commercial banks issued more than 4 billion yuan of bad debts in loans, and about 1.5 billion yuan of debts that could not be repaid to private depositors, even including a large amount of funds from enterprises and Shantou Finance Bureau and other departments. In the end, the bank was reorganized as Guangdong Huaxing Bank by the authorities to reopen, and the depositors’ money was also taken over by the new bank.
Bank of Nanjing was exposed to “big hole” and the whistleblower was punished and fired
Recently, Chinese securities practitioners broke the news that “financial shady” incidents have occurred one after another.
On June 30, Fu Mingfei, chief executive of Western Securities Communications, disclosed the risks of Nanjing Bank online. He said that “Nanjing Bank is said to have a big hole” and “alarmed the provincial government”, “About 40% of loans to the public sector are real estate credit; more than 50% The loan is the credit of the government project of the Industrial Fund” and other wordings, and it is recommended to “transfer as soon as possible if there is a deposit”.
The above news was quickly fermented on social media, and the stock price of Bank of Nanjing, which was hotly discussed by public opinion, fell by 10% in 6 trading days, and its market value evaporated by 11.9 billion yuan.
The Nanjing authorities came forward to put out the fire, saying that Fu Mingfei was punished by public security management for publishing the above-mentioned news about the Bank of Nanjing. On July 3, Nanjing police issued a notice of punishment. On the same day, Western Securities issued an announcement that Fu Mingfei was terminated from the labor contract.
Analysis: CCP fears that economic fraud will be exposed
It is worth mentioning that from April 1 this year, the “Measures for the Supervision and Administration of Directors, Supervisors, Senior Managers and Practitioners of Securities Fund Operating Institutions” (hereinafter referred to as the “Measures”) officially implemented by the CCP authorities, shall not Personnel strengthening management.
In addition, the Internet Information Office of the Communist Party of China announced in August last year that it would launch a special campaign to rectify the illegal collection and editing of the Qinglang business website platform and “We Media”. In this round of campaigns, four categories of financial “we-media” accounts, major public account platforms, major commercial website platforms, and major financial information platforms have become the key targets of the CCP’s crackdown.
The authorities claimed that the news released by these financial accounts “distorted interpretation” of the CCP’s financial policies and macroeconomic data, “speaking empty” of China’s financial market, and “speaking badly” of the Chinese economy.
Xie Tian, chair professor at the Aiken School of Business at the University of South Carolina, said in an interview with The Epoch Times that the CCP has always been afraid of being exposed as economic fraud, even if it is the real overseas data reported by the media, it will reflect the Chinese economy. The CCP will be afraid of the recession, because politics and economy have always been linked.
Responsible editor: Sun Yun#
