Bank customers stage a protest in Zhengzhou, Henan province, on July 10, after their funds were frozen by local banks. The sign in the foreground reads: “Henan Bank, return to us our legal deposits! The people’s life-saving deposits!” Photo: Reuters
Bank customers stage a protest in Zhengzhou, Henan province, on July 10, after their funds were frozen by local banks. The sign in the foreground reads: “Henan Bank, return to us our legal deposits! The people’s life-saving deposits!” Photo: Reuters
Anne Stevenson-Yang
Opinion

Opinion

The View by Anne Stevenson-Yang

Ponzi dynamic with Chinese characteristics exposed by mortgage boycotts and Henan bank crisis

  • Facing angry homebuyers and bank depositors, local authorities in China are looking to the central government to foot the bill, but Beijing wants them to take on more debt
  • The crisis points to a major weakness in Chinese banking and credit markets – the lack of real tests of the collateral used to extend credit

Bank customers stage a protest in Zhengzhou, Henan province, on July 10, after their funds were frozen by local banks. The sign in the foreground reads: “Henan Bank, return to us our legal deposits! The people’s life-saving deposits!” Photo: Reuters
Bank customers stage a protest in Zhengzhou, Henan province, on July 10, after their funds were frozen by local banks. The sign in the foreground reads: “Henan Bank, return to us our legal deposits! The people’s life-saving deposits!” Photo: Reuters
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