In central China, a crisis is brewing with growing worries from property-linked loans, angry depositors in the nation’s biggest bank scam and a viral video showing tanks being deployed on the streets.
Local authorities in central China’s Henan – the nation’s third most populous province with around 100 million people – are now cleaning up the property fiasco which has resulted in loan payment boycotts not only from owners of unfinished homes but even suppliers to property developers such as landscapers or sculpture makers.
Following an emergency meeting by top government bodies and major banks, a team made up of bad debt manager Henan Asset Management Company and state-owned Zhengzhou Real Estate Group will work out funding issues at troubled developers. The team aims to revive stalled projects, sell assets and restructure businesses to ensure the completion and delivery of homes to contracted buyers.
Nation’s Biggest Bank Scam
Separately, the central province is still facing pressure from the ongoing developments of the nation’s biggest bank scam. In April this year, hundreds of residents in Henan were reportedly unable to withdraw savings from a handful of banks, leading to months of complaints and demonstrations. A key event was the headlined protest in July when 1,000 depositors at a People’s Bank of China branch were met by a violent mob of unidentified men in white shirts, according to reports citing a widely circulated video.
Authorities have…
