Ou, 39, had congregated outside a train station in the provincial capital of Henan, along with over a dozen other victims of one of the largest financial scandals in China. They yelled, “Henan banks, return our savings.
According to two people with direct knowledge of the situation, the group, dressed in winter coats, wandered the streets for about thirty minutes before one of several unidentified men who had been following them yelled, “Close the net!” and the protestors were forced onto a bus and taken to a police station.
After being kept for many days while being fed moldy food and getting little sleep, the most were freed; however, Ou and two other deceived investors are still being held by Zhengzhou police, according to the two sources.
Investigating one of the economic protests that have spread throughout China since 2022—a time when hundreds of thousands of Chinese people have lost their homes in a real estate bubble and become victims of investment scams—are unreported arrest notices and interviews with five people who have firsthand knowledge of the situation.
They talked under the condition of anonymity because they were afraid of reprisals from authorities.
Requests for comment regarding the inmates and their treatment were not answered by China’s Ministry of Public Security, the Department of Public Security of Henan province, or the Zhengzhou Municipal Public Security Bureau.
About two years ago, a $4.2 billion scam involving four banks in Henan caused about 600,000 people to lose their funds, which alarmed some observers over the viability of rural lenders and set the stage for the current predicament of depositors.
China’s faltering economy was not the immediate source of the scandal and the protests that followed. However, they both stated that the exceptionally harsh treatment Ou and the other two received might be a reflection of official concerns about growing opposition associated with financial difficulty.
According to two researchers, while detention is a normal occurrence during economic protests, individuals engaging in political protests are frequently incarcerated for months before being freed.
According to Peter Dahlin of Safeguard Defenders, a human rights monitoring organization with a focus on China, “four months of detention for something as small as participating in a peaceful protest speaks volumes about the government’s inability to handle this slowly growing crisis.”
The Washington-based rights organization Freedom House’s China Dissent Monitor revealed a 127% increase in economic protests, down to 805 from the previous year’s fourth quarter in 2023. These include protests by laborers over unpaid pay, property owners whose flats were never constructed, and retirees and investors who were conned out of their funds.
Because of the growing discontent, “the central government is going to be eager to halt the protests in their tracks to prevent widespread unrest as the economy falters,” according to Andrew Collier, managing director of the independent research firm with a focus on China, Orient Capital Research, based in Hong Kong.
Requests for comments from the four rural banks in Henan were not answered. The lenders published alerts online as soon as the theft was discovered, directing “customers who are unable to conduct normal business” to register their information.
The National Financial Regulatory Administration, China’s banking watchdog, declined to comment regarding the scam and the follow-up inquiries.
In statements about the rise in economic demonstrations, Chinese officials have sometimes promised to address the issue in order to soothe resistance.
SLEEP DEPRIVATION,MOULDY BUNS
Two of the people claimed that after the Zhengzhou protesters were taken into custody, it took 26 hours for the police to feed them, including moldy steamed buns.
According to the sources, some detainees were roused and subjected to questioning between the hours of one and five in the morning. One of them was cuffed by their hands and legs.
China’s State Council has published regulations pertaining to the pre-arrest treatment of detainees, which include the requirements that they be given food and water and not be subjected to mistreatment. Provinces have regulations as well; Henan mandates that the food served to prisoners be clean and safe.
While most protestors have been released, Ou and two other demonstrators, Shi Jianjian and Hu Weiming, have not been located.
Calls and letters to the Zhengzhou police did not reveal much information on Ou’s whereabouts, despite the families’ best efforts. One family member said that they “thought Ou was dead”.
Ou’s police arrest notice is dated March 19, despite the fact that he was held on February 9. We failed to find the reason for the discrepancy
Ou and Shi’s detention notices charge them with choosing fights and stirring unrest, a frequent accusation against demonstrators in China. If Hu has been charged, it could not be determined
Shi’s 50-year-old family expressed concern for his well-being. A January 2023 doctor’s report states that he had diabetes and experienced sadness following his financial loss.
One of the people stated that Hu, a small-business owner as well, lost all of her family savings in the controversy and that her father had passed away from illness while she was being held in custody.
“SWEAT AND BLOOD”
The financial scandal concerned a complex fraud that was allegedly carried out across a few rural banks by Xincaifu Group, a private company that owned interests in the lenders, and bank employees who worked together to steal money from customers.
Based on company documents, Xincaifu deregistered in 2022 and refrained from making any public announcements regarding the scandal during that period.
Local governments paid out compensation to numerous consumers who had lost minor investments following a widespread outcry from depositors.
However, two of the five sources and an additional individual with knowledge of the situation claim that over 1,000 persons have not yet received payment.
The Zhengzhou three are among the many depositors who are not from Henan province and who made substantial deposits with the lenders because of the attractive interest rates.
Without mentioning any connection to the rural banks, China’s banking regulator said two of its officials were being investigated for vaguely alleged legal infractions after the story attracted international notice.
Furthermore, a Zhengzhou central bank officer was the subject of an investigation by the Central Commission for Discipline Inspection in Henan in July 2022 for alleged significant disciplinary violations.
However, two of the five sources and an additional individual with knowledge of the situation claim that over 1,000 persons have not yet received payment.
The Zhengzhou three are among the many depositors who are not from Henan province and who made substantial deposits with the lenders because of the attractive interest rates.
Without mentioning any connection to the rural banks, China’s banking regulator said two of its officials were being investigated for vaguely alleged legal infractions after the story attracted international notice.
Furthermore, a Zhengzhou central bank officer was the subject of an investigation by the Central Commission for Discipline Inspection in Henan in July 2022 for alleged significant disciplinary violations.
On its official WeChat account, the Intermediate People’s Court in Zhumadian City, Henan province, announced in February that five defendants associated with Xincaifu had been found guilty and given sentences ranging from 14-1/2 to 16-1/2 years in jail, along with fines amounting to hundreds of thousands of dollars.
The families of Ou, Shi, and Hu are currently awaiting word on whether the three will face legal action, while other depositors are still fighting to get their money back.
One depositor declared, “This is our whole family’s money, earned through blood and sweat.” “I’m not going to give up.”
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