Recently, a lot of Chinese commercial banks have been displaying their own capital problems after depositors faced difficulties in withdrawing money from many rural and urban banks.
The issues of frozen deposits have been found at lenders in Henan, Shanghai, Shenzhen, Liaoning and other places, triggering social protests.
In this regard, Yaita Akio, director of the Taipei branch of Japanese newspaper Sankei Shimbun, has made a blunt comment. He said it is likely that the Chinese government really has run out of cash.
In a post on Facebook on June 24, Akio said that there have been reports of liquidity crunch recently in various places. Many depositors’ funds have been frozen and the withdrawals have been restricted.
If the situation worsens, it will undoubtedly affect people’s trust and cause social unrest.
Chinese domestic media reported that some Henan rural and urban banks suddenly froze customers’ deposits without warning in late April. About 400,000 customers with a total deposits of 6 billion dollars could not be withdrawn, triggering protests.
In addition, the Agricultural Bank of China, one of the country’s four largest banks, also abruptly restricted depositors in May. It limits the daily withdrawal and transfer amount of 1,000 yuan (150 dollars). But 1,000 yuan was not enough for a person to pay mortgages, tuition fees, or invite friends to dinner. That is seriously affecting people’s daily lives.
At the same time, Alipay, a common online payment app, seems to have a problem. According to the Beijing News, a person namely (Mr.) Yu in Harbin was suddenly notified that his account was frozen for 3 years after he put all his property of 460,000 yuan (about 70,000 dollars) in a savings account in Alipay.
The reason is that the payment was misrepresented that Yu’s account may involve online gambling, illegal investment and financial management and other violations. Because Yu could not withdraw money, he had to find a friend to borrow money to live.
After facing complaints and media reports, Alipay finally unfrozen Yu’s account after two weeks.
Akio said that he was in Beijing in the past and used WeChat payment and payment cards. Though they are quite convenient, the customers’ personal information is risked being held by the authorities.
Akio explained that the Chinese government knows exactly where you eat, what books you buy, and whose charities you donate to.
He said the accounts of some activists have been frozen under the guise of suspected online gambling. This means that online payment tools have become a new means for the authorities to suppress dissidents.
There may be another reason for frozen funds and limited withdrawals this time. The Chinese government has spent a lot of money on big military parades, a large-scale Olympic Games, or engaging in a Belt and Road.
According to Akio, the recent round of restrictions on cash withdrawals is likely that the Chinese government really has no money.