Ive been fizzle and welcome. Its a politically sensitive year for china and confidence in the Financial Sector has blanched a few months ago for rural lenders in the northern province. Of hannon froze, the deposits of hundreds of thousands of customers. State regulators have finally announced the 2nd round of re payments to some of those account holders for next week. But as patrick fork reports from bay jing this isnt the only banking crisis causing so felonies ah, the weeks theyd been pockets of demonstrations. Then one sunday, earlier this month, hundreds gathered in june, joe, the capital of hun and province demand and compensation. For months, theyve been frozen at their Bank Accounts with 4 rural lenders. Before long, thousands of security personnel appeared to suppress the protested panels. Ugly russia the by the hundreds, grab somebody and beat them and kick them regardless whether it was men, women, the elderly, or children, even people with disabilities. Claiming was one of the deposit is there that day. Thats not his real name, but laming wants to keep his identity concealed, fearing possible. Retribution, a former taxi driver, he told us he deposited 1000001. 00 or around 850000 us dollars. And to one of the banks that had blocked their customers accounts, they were his families, a savings, and they had entrusted him to invest the money. She had a long island to pain, it is brought to us may be life long and could even affect our childs future. The hun and bank scandal drew widespread attention even before the crackdown on protested last month. Many people in china were outraged. After thought, his turn, some of the deposits covert, 19 health could read that stop them from travelling to demonstrate. Its not clear just how much money the victims have lost in this scandal. But some reports of suggested it could be in the 10s of billions of you on local police, have blamed it on a criminal gang saying its took over these banks and made illegal transfers through fake loans. Officials now say theyll start repaying some victims, but only those with up to 50001. 00 and savings. She and many others fear theyll never get the full amount back when theyre hanniman, i think theyre trying to recover the stolen funds if they could recover whats been stolen. We wouldnt have had this kind of situation today. So im not optimistic. This is the only crisis engulfing chinese banks right now. Tens of thousands of home buyers across the country have been withholding mortgage payments on stalled construction projects. Many of them ran out of funds, a da struggling to complete her man is again at the center. The capital jung, joe is where most mortgage boycotts been recorded and the say both cases point to week government oversight and the local authorities. And in the case of the mortgage crisis, its the local housing departments, local Housing Administration department. They are responsible for checking the accounts and making sure that developers use this money in, in appropriate way. This has not happened. Many developers have faced the cash crunch since beijing began raining in easy credit, the tame its dead power. So far, bank say they can manage the risks from the mortgage crisis, but if it gets worse, it could threaten their credit profiles and power more pressure on chinas already strained financial system. O resident, gigi, ping. The timing could not be worse. It comes just months ahead of the once every 5 years, communist Party Congress there, hell likely tout his success at maintaining stability as a reason to break president s and stand for a 3rd. So diana shaw liver is chief economist in no do economics and independent consultancy. She said up, diana, we heard there about developers going bust, but also the misappropriation of funds a both these scandals, the real estate scandal and these frozen Bank Accounts are linked to corruption. Basically some of them are linked to corruption, but actually this is much bigger than that. There is geno social discontent at the way says him being has changed the current how the economy runs in china and his economic policy. In particular, his ideas about the housing in the real estate market. To what extent, how, how big are you talking . Because according to estimate construction work, for example, as holsted in the past year on 13000000 apartments. Where, where could all this lead . Well look, i mean its, theres the construction side, but there is also something even more important. The majority of Household Wealth is in housing and shifting being has declared that houses are for living in, not for speculation. So the assault of your warranty is on the property said, wait via as well to suppress house prices and lower the share of Real Estate Investment in g. D p is having profound impact on both the supply side. And if youd like the demand side in china, people have very few outlets where they can earn a decent return on their savings on their wells. And they had poured into the Housing Market in expectation of ever rising housing. House prices, which has been actually validated up until the last couple of years. And this is what this is all about. Because as you know in china, people can not go to the ballot box and express their discontent. So they do it in other ways. One of the banking scandal was related to corruption, but its not just that diana, to bring us back to the real estate market. Its considered a safe and lasting asset investing in property to pass down to your kids and your kids, kids. You said thats changed. I hows this going to affect the chinese it has already been affecting them quite profoundly, especially when you consider and take into account the uncertainty of log downs. And more generally, shes policy of income redistribution. So the well off urbanites are feeling the pressure consuming Consumer Confidence is low and spending is in the doldrums and all the monthly china can not continue just throwing on for or money at unproductive investment. It needs to create the right circumstances in which or incentives in which consumers can thrive and become a growth driver. Its doing the exact opposite. Well, this is the tricky balance to find between communism man and capitalism. Code this become a big crack in the states. Social contract, so to speak. Yes, its a small crack right now, but actually the mortgage boycott is a very Interesting Development because it does give house calls a much bigger leverage if youd like, you know, in the. 2 past even 5 years ago, the majority of housing was bought with savings, not with mortgages. Now mortgages as a share of g, b, r, almost close to western levels. And in the past, households protested by gathering in from them develop us maybe brushing their property. But they couldnt do much more if they lost their savings. They lost their savings. But now having bottles from the banks, they could threaten but the engine as just any crisis within the banking system. If this spreads out, so they have a lot more leverage to express their discontent. I say diana shale over there and economists are talking to us about the various scandals at the moment hitting the chinese Property Market and banking sector. Thank you very much for the insight. Very interesting stuff. Thank you, ben. As we saw in our banking report in china, the q, our color code on a smartphone can restrict your movements. Green means youre healthy and you can go about daily life. But yellow or red mean you present a risk. We met a human rights lawyer who says the software is being used as a form of state control. Ginger hello, lytle lawyer, wong. You hasnt been able to move around freely for some time as a critic of the regime. Shes often been under house arrest. But now the government has developed a new restriction on movement. The corona warning app is compulsory nationwide, but no longer works for her long. You cant even go shopping maybe even when she needs to go to court for sensitive kaylee. The app shows a yellow code even after multiple negative p c. R tests. With an apple pie hello to court. As an attorney on a case in the city of the tongue, all had youlowa anything. How much it will be in houma now, but they turned my coat yellow late. I couldnt do anything. You can hardly move you. You cant go anywhere. I did die the night, or she will, you all need scenarios that are john lydell. Again, when you is incensed that there are no laws covering the operation of the Corona Health app, all of on the m b one and they will live in january. Theres no paperwork, no regulations since nothing. So the restrictions imposed through the app are totally legal and you have a white glove. Wow. Getting around the city is now an obstacle course, shall you even in the taxi, the health apps q r code has to be scanned. Luckily, the driver only needs one passenger to log in. Yelp was always them. What if someone doesnt scan it . Not gonna you have to, thats the rule. Low. But what if they dont have a cell phone, do them by that, then they cant go by taxi media. A green code on the health app is also required for buses and subways. Even access to apartments is now monitored every one in beijing lives within a gated compound. With only one entrance. There are checkpoints everywhere. When you lives in the beijing suburbs, only after a heated argument, did the security guards allow her into her own building without a scan . What . Yeah. All visitors must also log in. Yes, good at all. No one knows what will happen to morrow. I mean, maybe the guard wont let me through and i wont be able to get in around again. And this is all illegal by law. You taught the elia, taiwan, valley petty robot hill. The Chinese Government has turned the corona up into a surveillance tools every time its scant names and locations are passed on to the police and we leave you with a good news story from china way. So if skating is soaring in popularity as code 19 shutdowns cub some a travel and free of the streets, it 1st took off in spring, especially among women. Happy bought it. Thanks for watching and have a good weekend. Bye bye. What secrets lie behind these will discover new adventures in 360 degrees and explore fascinating World Heritage sites d w World Heritage 360 get the out now. No man has no limits. Love is for Everybody Loves his life. I love matters and thats my new podcast. Im evelyn shire mom and i really think we need to talk about all the topics that more survive and, and i, i have invited many deer valley gas and i would like to invite you in ah, your of reckons with the impact of rates rises, the c b s decision to height rates by half a percentage point was welcomed him some quarters. But what does it mean for the euro zones . Biggest borrowers and as europe left its future in the hands of too many other countries, well look at how the e u is trying to lower its reliance on foreign imports. This is data we business on robots in berlin. Welcome to the program. It followed immense pressure. The European Central banks decision to hike Interest Rates by 50 basis points has been welcomed in many parts of the euro zone. But not all the higher than expected rates rise announced by christine le god on thursday brought the policy closer in line with the u. S. Federal reserve and strengthened euro against the dollar. The key aim is to bring down record inflation in your resume. However, the rise has been met with concern in parts of europe with higher levels of debt among them. Italy, when news came on the same day as its prime minister, mario druggie announced his resignation. Well, lets discuss this further with kramer. His chief economist at comments bank enjoys us for frankfort. Doing good. Have you on the program . Good that you can hear us. This rates rise is always going to have a different impact
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