Advertisement

China’s pork crisis: local banks offer meat to new customers with African swine fever set to continue

  • Smaller Chinese banks, which make less on loans and have fewer market funding options than bigger banks, have turned to gimmicks to bring in financing
  • The outbreak of African swine fever has sent the price of pork skyrocketing, meaning pork has become a much-sought after meat ahead of a busy festive season

Reading Time:4 minutes
Why you can trust SCMP
Wholesale pork prices last week fell back 0.8 per cent from the previous week, the fourth straight weekly decline, according to the latest data released by the commerce ministry on Wednesday. Photo: Bloomberg
He Huifengin Guangdong,Orange WangandFinbarr Berminghamin Brussels

Handing out servings of expensive pork as a reward for opening an account is the latest gimmick being used by a growing number of small local banks across China to lure new depositors.

Advertisement

Banks are being forced to go to greater lengths to attract new deposits, since they generally earn less money from lending and have fewer funding options than their larger peers.

The fact that pork could be seen as a desirable reward for opening a bank account also speaks to the country’s massive shortage of its favourite staple meat.

On Monday, clients who deposited 10,000 yuan (US$1,430) or more in a three-month time deposit at the Linhai Rural Commercial Bank in Duqiao in Zhejiang province were then eligible to enter a lottery to win a portion of pork ranging from 500 grams (18 ounces) to several kilograms.

The money is still my own, and the interest is good. I’m happy to receive a piece of pork in addition
Female bank customer

“The money is still my own, and the interest is good. I’m happy to receive a piece of pork in addition,” one female client, who deposited around 20,000 yuan (US$2,900), was quoted as saying by the Metropolitan Express.

Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x