China detains alleged bank fraud gang after protests
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BEIJING • Members of a "criminal gang" accused of taking control of local banks have been arrested in central China after rare protests over alleged financial corruption sparked violent clashes between customers and the authorities.
Hit hard by the country's economic slowdown, four banks in Henan province have since mid-April frozen all cash withdrawals, leaving thousands of small savers without funds and sparking sporadic demonstrations.
In one of the largest such rallies yet, hundreds gathered on Sunday outside a branch of the People's Bank of China in Henan's capital Zhengzhou demanding their money, according to multiple witnesses who declined to be named.
Protesters held banners accusing local officials and police of corruption, and calling on the central government to "give severe punishment to Henan", video footage verified by AFP showed.
The local authorities did not comment on the protests, but police in nearby Xuchang city said late on Sunday that they had arrested members of an alleged criminal gang for their suspected involvement in a scheme to gain control of local banks.
The gang made illegal transfers through fictitious loans and used their shareholdings - as well as "manipulation of executives" - to effectively take over several local banks starting in 2011, police said.
The province's banking and insurance regulator also said late on Sunday that it was "accelerating" plans to tackle the local financial crisis and "protect the legal rights and interests of the broader public".
Footage of Sunday's rally showed the protesters throwing objects, while one participant said demonstrators were hit and injured by unidentified men.
Another video verified by AFP showed a crying woman who was complaining about her lost money being forced onto a bus by police.
Some demonstrators have accused officials of colluding with local banks to suppress rallies, and the provincial authorities were suspected last month of abusing the country's mandatory health code to effectively bar protesters from public spaces.
The demonstrators in Henan largely drew sympathy on Chinese social media yesterday, with many netizens on the Weibo platform pointing the finger at local officials.
"Please strictly investigate the Henan government," one Weibo user said in a post.
AGENCE FRANCE-PRESSE