Henan Authorities Announce Breakthrough in Yuzhou Xin Minsheng Bank Run Case

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Henan province authorities say they have made major progress in their investigation of a recent bank fraud case that threatened to trigger a run on the rural banking sector.

On 1 July Henan’s banking and insurance regulator and its local financial authority announced via their official websites that they had “made major progress in the investigation and handling of the case involving four rural county banks, including Yuzhou Xin Minsheng (禹州新民生).”

“The relevant authorities are currently filtering through information and researching and formulating a disposal plan,” authorities said. “We remind relevant clients to use online procedures for registration, and to make accurate registrations.”

In June Henan province authorities announced that initial investigations had established that Henan New Wealth Group (Henan Xin Caifu Jituan) (河南新财富集团) had engaged in criminal manipulation and usage of the online transaction systems of rural banks including Yuzhou Xin Minsheng, and that local authorities were currently investigating the whereabouts of funds. 

Prior to that, China’s banking authorities stated that Henan New Wealth, a key shareholder in four rural county banks in the province, had colluded with internal and external parties to use third-party platforms to accept funds from the public in breach of criminal law.