Behind the difficulty of online withdrawals of village banks in many places: the executives of the initiating banks are wanted, and some companies are suspected of non-absorption


2022-05-19: [Article Link Original title: Behind the trouble of collecting money on the bank line of the village and village bank: the launch executives are wanted and businesses are suspected to be non-smoking. For a whole month, Ms. Lee's 580,000 Yuan in the bank could not be removed. Ms. Lee, a member of Jiangsusu State, co-existed in 580,000 Yuan at the Haut-Huimin Village Bank in Henan and Huang Huai Village Bank in Jiang City two years ago through Internet software, which included her parents'pensions. The bank's property gave her some monthly earnings, but as of 18 April this year, she had no further earnings on the bank's funds and was unable to operate even the principal withdrawals. Along with Ms. Lee, there are six online depositors in the village bank. On 18 and 19 April, six village banks in the two regions announced that they had suspended online banking and mobile banking services because of “system upgrades.” The six township banks include 4 in Henan Province and 2 in Anhui Province, namely: Xinmin Village Bank in Xuchen Province, Henan Province; Xinmin Village Bank in Tsai Heemin Town Bank in Ma City; Xiaohua Village Bank in Hong Chu City; Xing Hua Town Bank in New Orientale Village Bank, where the city is closed; and Xinhua Village Bank in Siuzhou Town, Anhui Province; and Xinhua Village Bank in Xiaozhou County, Huangshan City. Of the six village banks mentioned above, five are the initiators and major shareholders of the Xu Chang Rural Commercial Bank (hereinafter referred to as the Xu Chang Rural Bank), and it is worth noting that in March this year, the Xu Chang City Public Security Bureau issued a Notice of Reward for 100,000 Yuan wanted by Sun Zhenv, a fugitive suspect suspected of “serious economic crimes”. On 16 May, the Xu Chang police civilian police officer informed The Papar (www.thepaper.cn) that the case had not yet been revealed, although the reward notice for 100,000 Yuan was “defunct”. Has Sun Zhenv's alleged “serious economic crime” been linked to the village bank? The Xu Chang City Public Security Bureau has a staff member who warns online depositors that they should register relevant information with the police in a timely manner; after preliminary investigation, Henan's New Wealth Group Investment Holdings Limited (hereinafter referred to as “Henan's New Wealth Group”), which is closely linked to Xu Changang Chamber of Commerce, is suspected of illegally absorbing public deposits. The Board and the Central Bank are following this matter on an ongoing basis and have tasked Henan's financial regulatory authorities to work with the relevant authorities to deal with it in a sound manner. On 18 May, the Paper journalist learned from the Xu Changjun City Public Security Bureau that the Xuzhou police had been involved in the case of the village bank and were currently conducting a full investigation. Six village banks in two locations are scheduled to suspend their operations on the line. She told Ms. Lee in Suzhou that in 2020, she had bought 580,000 Yuan belongings from two village banks that had co-existed between the Chei Heemin Town Bank and the Huang Huai Village Town Bank in Henan through the “blank” software on her mobile phone. Ms. Lee is a cautious man, immediately thinking of removing the 580,000 Yuan principal deposit. When she was operating on her cell phone, she found that the electronic accounts of both village and town banks showed that the system was being maintained and could not be cashed. On 18 and 19 April, the six village banks issued “system upgrade notices” via websites, WeChat and APP, respectively, claiming that they had suspended online banking and mobile banking services as a result of system upgrades and maintenance. When the village bank closed the line, some depositors lined up at the business point to collect the money. The above-mentioned six village banks, including four in Henan province: the Xujin Village Bank in Xuchang County, the Qi Huixin Town Bank in Ma's city, the Xiang Huai Town Bank in Hong Chu City, and the New Orientale Town Bank, which has opened the city; and two in Anhui province: the Xinhua River Village Bank in Xiaozhou City, and the Xinhua River Town Bank in Huangshan City. According to the online depositors interviewed by The Paper, the bank deposits in the two towns and villages are managed via Internet platforms, mostly from outside the province, mainly from the more economically developed regions such as Guangdong, Jiangsu and Shandong. Although the relevant village bank advised that the offline network was normal for withdrawals, most of the online depositors were still waiting for information and did not go to the bank network, affected by the epidemic, traffic and other factors. Photo from the company's network of officials. On 19 April, as a technology service provider to the Wisdom Bank of the Internet, Junzhinta (Shenzhen) Science and Technology Development Ltd. submitted a written report to the relevant authorities entitled " Response to the large number of complaints about the closure of all online fund payments by the New People's Bank in Shunzhou, the Huang Huai Village Bank in Jiang City, the Shanghai Heemin Village Bank, and the four villages of the Shui Huai Village Bank in Siu Town Bank, resulting in a large number of Internet platforms and a serious run-off ". Photo from the bank's network of officials. This written report, stamped by the company, shows that Junzheng Zhida provided digital transformation services to the four village banks mentioned above and connected the bank's Internet deposit operations to external Internet platforms. In 2000, at the request of four village banks, the company helped to connect its banking system to Internet platforms such as Nishikawa, Beijing Finance and Jindong National Institute for Maritime Affairs, where four village banks sold deposit products from various branches of the cooperative Internet platforms such as Sumi, which were subsequently suspended due to the relevant regulations. According to the report, on 18 April, four village and town banks forced offline money payments, which prevented Internet deposit clients from making cash withdrawals, and there had been an offline run-off and a large number of negative cases. “The size of the Internet deposits in the four villages mentioned above on various Internet platforms amounts to 10 billion, involving nearly millions of clients.” According to Junzhengjida, as a partner in the banking and Internet platforms, it has repeatedly informed four village and town banks and their start-up business on Xu Chan and has failed to provide a solution. Many of the bank depositors interviewed said that they had purchased the savings products of the relevant village banks through Internet financial platforms, such as Sumikawa and the Tokyo Finance, a year earlier, and that they had earned higher interest earnings than ordinary banks. Following the regulations issued by the Supervisory Authority in 2021, most of these online depositors operate through the bank's WeChat sub-program or APP through online banking and mobile banking channels, on the basis of a call from the village bank. These regulations refer to the Circular on the Regulation of Matters Relating to the Operation of Personal Deposits by Commercial Banks via the Internet, issued in January 2021 by the Silver Insurance Supervisory Board and the Central Bank, which requires that commercial banks shall not conduct time deposits and fixed-term deposits through non-self-employed web platforms. On 18 May, a full month after the “suspension” of operations on the line of six village banks in the two regions, the online banking and mobile banking systems of those banks have not yet resumed operation. The paper journalist contacted several banks in recent days. “The system is still being maintained,” according to the staff of the Ninhuai Village Banking Department in Anhui County; and the customer service of the Nin Huai Village Bank in Angugu Town, stating: “As a result of recent irregularities in my operations on the line, the closure of the operations was suspended in order to protect the legitimate rights and interests of everyone, and is now being verified by the authorities. “In recent times, we have suspended online operations to protect the legitimate rights and interests of a wide range of clients by using my online channels for economic crime, which have been reported and are being investigated by the authorities. “The public security authorities are doing their utmost to investigate the situation and please be patient in waiting for the notice. The Vice-President is wanted and shares are frequently compromised. In addition to the opening of the New Orientale Town Bank, the six village banks that closed their funds on the line, the other five start-ups and major shareholders were Xu Chang's comptoirs. Photo from WeChat, Department of Operations Management, Xu Chang Chamber of Commerce and Industry, 2021. According to public sources, such as business information, the Xu Changgang comptoir was founded in November 2009 by the Xu Chang Weidu comptoir, which was founded on the basis of a partnership of rural credit unions in the former Weidu region of Xu Chang City. In terms of outward investment, the Xu Changang comptoir is a major shareholder in five village banks. The Xu Changang comptoir has a 51% share in the Upper Tsai Heemin Village Bank and the Huang Huai Village Bank in Chang City. According to information published by the Superintendence of Silver Insurance, a pilot village bank was launched in 2006. By the end of September 2020, a total of 1641 village banks had been set up throughout the country, covering 1306 counties (city, flag) in 31 provinces of the country. According to the Provisional Regulations on the Management of Commune Banks, at least one of the initiators or funders of the establishment of the Commune Bank shall be a banking financial institution, and the largest shareholder must also be a banking financial institution. In the context of this policy, from 2011 to 2016, the Xu Changgang comptoir (formerly the Weidu comptoir) became the largest shareholder of the five village banks, namely the New People's Village Bank (NSVVB) and the Haut Tsai Heungmin Town Bank. On 18 April 2022, five village banks controlled by the Xu Chan Chamber of Commerce and Industry closed online banking, mobile banking, etc. Just a week ago, the Xu Chamber of Commerce and Industry's financial department changed its personnel and the Superintendence of Silver Insurance approved Zhou Xiao Xiang as the general manager of the bank's finance department. On 5 March, the Public Security Bureau of Xu Chang City issued a Notice of Reward, which states that “Sun Zhenv has fled after the public security organs of Xu Chang City have investigated in accordance with the law on suspicion of serious economic crimes.” The Circular states that the public security organs reward RMB 100,000 Yuan for providing significant leads and assisting the police in apprehending suspects. Sun Zhenpa is from Xu Chanzhou, where he served as the director of the urban credit union and president of the Xiangzhou City Development Area and the Governor of the Xiangzhou County Rural Credit Cooperation Association. According to the official network of the Henan Supervisory Authority of the China Silver Insurance Supervisory Board, in June 2018, with the approval of Xu Changqian Superintendent, Sun Zhenfu acted as vice-president of Xu Changgang Chamber of Commerce and Industry. According to the website of the Xu Chang City Standing Committee, on 25 December 2021, the 47th session of the Xu Chang City Standing Committee of the 7th Session of the Xu Chang City People's Congress held a vote on the Decision on the Licensing of Coercive Measures against Sun Zhenv, a representative of Xu Chang City's 7th People's Congress. Has Sun Zhenv's alleged “serious economic crime” been linked to the village bank under the banner of Xu Changnon Business Bank, and is he currently at large? On 16 May, the journalist The Paper contacted Officer Choi of the Xu Chang police according to the Reward Notice, who stated that the reward notice for 100,000 Yuan was previously “defunct”. At present, the statutory representative of the Xu Chang Chamber of Commerce and Industry is Jianbao's successor in March 2021. According to business information, the registered capital of the Xu Chamber of Commerce and Industry is 1 billion yuan, with 73 current shareholders and a more decentralized shareholding. At present, the first major shareholder is Xu Changde Million Farm Company, which holds about 1.25 per cent of the shares, and it is worth noting that 25 of the 73 shareholders have been classified as untrustworthy implementers. In recent years, the Xu Chang Chamber of Commerce and Industry has experienced a high incidence of equity exports, which are currently available in 90 cases. According to China Business, in November 2021, Xu Chang Chamber of Commerce and Industry shares of 76892000 have been identified. For example, two companies, the Commissariat of Trade in the Ma's City and the Chang Guo City Business Company, were not listed as shareholders in Xu Changang's comptoirs, but each offered the Xu Chan comptoirs' shareholdings to SONG Dynasty Bank, which accumulated 45 million shares and 42,000,000 shares, respectively. It is clear that ownership by commercial banks is not subject to compliance. Article XII of the Provisional Scheme for the Management of Equity in Commercial Banks provides that: Shareholders in commercial banks may not entrust or accept other persons to hold shares in commercial banks. On April 28, 2022, the Omega District Court opened a series of eight auction announcements on the People’s Court’s network of litigation assets, the object of which was the sum of the company’s shares. Photo from Ali's auction network. The above-mentioned eight auction information is now available on the Internet auction platform, with a total of 42,000,000 shares in the stock of Xu Chang's comptoir and comptoirs, with a total assessment value of over 130 million yuan and a total start-up price of about 119 million yuan. The auction is held from 29 to 30 May. The New Wealth Group has surfaced and is suspected of illegally absorbing public deposits The stock pledge auction, stock-holding, shareholder “invisible” and some of the problems that arose in the course of Xu's business were brought to the attention of the regulatory authorities. Indeed, in January 2018, the China Banking Supervisory Board issued the Interim Measures for the Management of Equity in Commercial Banks, which regulate the management of equity and corporate governance in commercial banks. It was also that year that Xu Chang's comptoirs were punished twice by the regulatory authorities. On 7 August of that year, the Xu Chang Bank Office issued a warning to the Xu Chang farmers'comptoirs and fined them 200000 Yuan, the penalty being “inadequate implementation of the responsibilities and obligations of the governing bodies and inadequate corporate governance checks and balances”. Twenty days later, the Xu Chang Bank Office again imposed an administrative penalty on the Xu Changgang Chamber of Commerce and Industry and a fine of 300,000 Yuan, which was imposed for “infringement of the actual investment of funds through the joint venture, in violation of the law”. As a result of the Internet deposit operations carried out by various village and town banks under the banner of the Xu Changang comptoir, according to several online depositors, most of the depositories introduced by the village and town banks have higher interest rates than other banks, with an annualized rate of return of more than 4.6 per cent. The excessive cost of absorbing deposits may pose a risk to banks’ profit-seeking efforts. For example, four Henan-based town banks, which closed down their operations at this time, have been subject to administrative penalties for irregularities in the lending process. Following the closure of six village and town banks, such as the Ninmin Village Bank in Chenzhou, the Bank of Chui Heemin Village Bank and others, the launch of the Xu Chang Farmers Bank and its association with the capital behind it has generated interest among the industry. Among the “partners” closely associated with Xu Changan comptoirs, an enterprise called Henan's New Wealth Group has surfaced. It's from Eyewitness. According to business information, Henan's New Wealth Group was established in 2011 with a registered capital of 116 million Yuan in Cheng Dongxin District of Chengzhou City and operates under the heading “Investment in business, investment in business and management”. According to Caixin, Henan's New Wealth Group is linked to various village and town banks initiated by Xu Changang Business, or holds indirect shares as “hidden” shareholders; there are bankers in Henan who have revealed that the original owner of the new Oriental Town Bank was also Henan's New Wealth Group, and that the new wealth group later withdrew, holding 30 per cent of the shares by Henan's Newzheng Chamber of Commerce and Industry; the actual controller behind Henan's new wealth group, or a businessman. Henan's New Wealth Group was involved in the case of the former Vice-President of the Bank of Zhengzhou, Joanne, who, according to public reports, was sentenced to 14 years' imprisonment for bribery in October 2018. The first-instance judgement revealed that from 2007 to 2016, Joanne took advantage of his position to assist a company controlled by the Chairman of the Henan New Wealth Group, Lu, in lending to the Bank of Zhengzhou, and subsequently demanded a cumulative sum of over 2,394,000 yuan from Lufoso, which was returned after the incident. In terms of outward investment, Henan’s New Wealth Group is a major shareholder in three enterprises, each holding 51 per cent of their shareholdings: Henan’s New Ricky Investment Development Corporation, Henan’s New Business Development Corporation, and Henan’s New Silver Investment Development Corporation. The photos are from Eyewitness. Paradoxically, all three companies held by Henan's New Wealth Group were cancelled in July 2020. Henan's New Wealth Group was also cancelled in February 2022. Just two months after the cancellation of the New Wealth Group in Henan, six village and town banks, such as the Nizhengmin Village Bank in Jinzhou, closed access to funds such as cash withdrawals and transfers. On 24 April, the Crown Prince, who had already reported to the police, called the Xu Chang City Public Security Bureau 110 to inquire about the progress. In the voice recording, 110 staff members indicated that, following a preliminary investigation by the police, the Henan New Wealth Group, which cooperated with the relevant village and town bank, was suspected of illegally absorbing public deposits, and that the police were currently conducting further investigation and forensics. Staff members also send copies of ID cards, bank accounts, deposit and transfer vouchers, whether or not to purchase property, etc. to the police, and can communicate the progress to other depositors “to cooperate with the public security authorities in their investigation and taking evidence”. Some of the depositors were concerned that the money deposited in the relevant village bank was being channelled into the purses of some of the related businesses. On 22 April, the Central Bank opened the central bank branch and the Superintendence of Silver Insurance issued an announcement to the effect that the Bank of New Orientale town had paid its deposit reserves in full and had taken part in deposit insurance, and that the legal deposits of depositors were protected by law. In accordance with the Deposit Insurance Regulations, in order to prevent and mitigate financial risks, commercial banks in our country are required to be insured against deposit insurance, and the depositor's deposit principal and interest, when combined, may be paid from the insurance fund up to a maximum of 500,000 Yuan, and the excess of the limit may be paid by law from the insured institution for the liquidation of the property. At present, the closure of online services by the banks of villages and towns in Henan and elsewhere has attracted the attention of the financial regulatory authorities, and on 18 May the Securities Times reported that the Bank and the Bank of People's Republic of Korea have instructed the Board and the Central Branch of the Bank of Chengzhou to exercise supervisory responsibility and to cooperate with the local party committee government and relevant departments in their proper handling. It is known that the relevant village bank shareholders, the Henan New Wealth Group, absorb public funds through internal and external collusion, the use of third-party platforms and money brokers, and are suspected of committing offences against the law, and that investigations have been opened by the public security organs. On 18 May, The Paper learned from the Public Security Bureau of Henanzhou that the case concerning the village bank is still under full investigation.


Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.



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Behind the difficulty of online withdrawals of village banks in many places: the executives of the initiating banks are wanted, and some companies are suspected of non-absorption


2022-05-19: [Article Link Original title: Behind the trouble of collecting money on the bank line of the village and village bank: the launch executives are wanted and businesses are suspected to be non-smoking. For a whole month, Ms. Lee's 580,000 Yuan in the bank could not be removed. Ms. Lee, a member of Jiangsusu State, co-existed in 580,000 Yuan at the Haut-Huimin Village Bank in Henan and Huang Huai Village Bank in Jiang City two years ago through Internet software, which included her parents'pensions. The bank's property gave her some monthly earnings, but as of 18 April this year, she had no further earnings on the bank's funds and was unable to operate even the principal withdrawals. Along with Ms. Lee, there are six online depositors in the village bank. On 18 and 19 April, six village banks in the two regions announced that they had suspended online banking and mobile banking services because of “system upgrades.” The six township banks include 4 in Henan Province and 2 in Anhui Province, namely: Xinmin Village Bank in Xuchen Province, Henan Province; Xinmin Village Bank in Tsai Heemin Town Bank in Ma City; Xiaohua Village Bank in Hong Chu City; Xing Hua Town Bank in New Orientale Village Bank, where the city is closed; and Xinhua Village Bank in Siuzhou Town, Anhui Province; and Xinhua Village Bank in Xiaozhou County, Huangshan City. Of the six village banks mentioned above, five are the initiators and major shareholders of the Xu Chang Rural Commercial Bank (hereinafter referred to as the Xu Chang Rural Bank), and it is worth noting that in March this year, the Xu Chang City Public Security Bureau issued a Notice of Reward for 100,000 Yuan wanted by Sun Zhenv, a fugitive suspect suspected of “serious economic crimes”. On 16 May, the Xu Chang police civilian police officer informed The Papar (www.thepaper.cn) that the case had not yet been revealed, although the reward notice for 100,000 Yuan was “defunct”. Has Sun Zhenv's alleged “serious economic crime” been linked to the village bank? The Xu Chang City Public Security Bureau has a staff member who warns online depositors that they should register relevant information with the police in a timely manner; after preliminary investigation, Henan's New Wealth Group Investment Holdings Limited (hereinafter referred to as “Henan's New Wealth Group”), which is closely linked to Xu Changang Chamber of Commerce, is suspected of illegally absorbing public deposits. The Board and the Central Bank are following this matter on an ongoing basis and have tasked Henan's financial regulatory authorities to work with the relevant authorities to deal with it in a sound manner. On 18 May, the Paper journalist learned from the Xu Changjun City Public Security Bureau that the Xuzhou police had been involved in the case of the village bank and were currently conducting a full investigation. Six village banks in two locations are scheduled to suspend their operations on the line. She told Ms. Lee in Suzhou that in 2020, she had bought 580,000 Yuan belongings from two village banks that had co-existed between the Chei Heemin Town Bank and the Huang Huai Village Town Bank in Henan through the “blank” software on her mobile phone. Ms. Lee is a cautious man, immediately thinking of removing the 580,000 Yuan principal deposit. When she was operating on her cell phone, she found that the electronic accounts of both village and town banks showed that the system was being maintained and could not be cashed. On 18 and 19 April, the six village banks issued “system upgrade notices” via websites, WeChat and APP, respectively, claiming that they had suspended online banking and mobile banking services as a result of system upgrades and maintenance. When the village bank closed the line, some depositors lined up at the business point to collect the money. The above-mentioned six village banks, including four in Henan province: the Xujin Village Bank in Xuchang County, the Qi Huixin Town Bank in Ma's city, the Xiang Huai Town Bank in Hong Chu City, and the New Orientale Town Bank, which has opened the city; and two in Anhui province: the Xinhua River Village Bank in Xiaozhou City, and the Xinhua River Town Bank in Huangshan City. According to the online depositors interviewed by The Paper, the bank deposits in the two towns and villages are managed via Internet platforms, mostly from outside the province, mainly from the more economically developed regions such as Guangdong, Jiangsu and Shandong. Although the relevant village bank advised that the offline network was normal for withdrawals, most of the online depositors were still waiting for information and did not go to the bank network, affected by the epidemic, traffic and other factors. Photo from the company's network of officials. On 19 April, as a technology service provider to the Wisdom Bank of the Internet, Junzhinta (Shenzhen) Science and Technology Development Ltd. submitted a written report to the relevant authorities entitled " Response to the large number of complaints about the closure of all online fund payments by the New People's Bank in Shunzhou, the Huang Huai Village Bank in Jiang City, the Shanghai Heemin Village Bank, and the four villages of the Shui Huai Village Bank in Siu Town Bank, resulting in a large number of Internet platforms and a serious run-off ". Photo from the bank's network of officials. This written report, stamped by the company, shows that Junzheng Zhida provided digital transformation services to the four village banks mentioned above and connected the bank's Internet deposit operations to external Internet platforms. In 2000, at the request of four village banks, the company helped to connect its banking system to Internet platforms such as Nishikawa, Beijing Finance and Jindong National Institute for Maritime Affairs, where four village banks sold deposit products from various branches of the cooperative Internet platforms such as Sumi, which were subsequently suspended due to the relevant regulations. According to the report, on 18 April, four village and town banks forced offline money payments, which prevented Internet deposit clients from making cash withdrawals, and there had been an offline run-off and a large number of negative cases. “The size of the Internet deposits in the four villages mentioned above on various Internet platforms amounts to 10 billion, involving nearly millions of clients.” According to Junzhengjida, as a partner in the banking and Internet platforms, it has repeatedly informed four village and town banks and their start-up business on Xu Chan and has failed to provide a solution. Many of the bank depositors interviewed said that they had purchased the savings products of the relevant village banks through Internet financial platforms, such as Sumikawa and the Tokyo Finance, a year earlier, and that they had earned higher interest earnings than ordinary banks. Following the regulations issued by the Supervisory Authority in 2021, most of these online depositors operate through the bank's WeChat sub-program or APP through online banking and mobile banking channels, on the basis of a call from the village bank. These regulations refer to the Circular on the Regulation of Matters Relating to the Operation of Personal Deposits by Commercial Banks via the Internet, issued in January 2021 by the Silver Insurance Supervisory Board and the Central Bank, which requires that commercial banks shall not conduct time deposits and fixed-term deposits through non-self-employed web platforms. On 18 May, a full month after the “suspension” of operations on the line of six village banks in the two regions, the online banking and mobile banking systems of those banks have not yet resumed operation. The paper journalist contacted several banks in recent days. “The system is still being maintained,” according to the staff of the Ninhuai Village Banking Department in Anhui County; and the customer service of the Nin Huai Village Bank in Angugu Town, stating: “As a result of recent irregularities in my operations on the line, the closure of the operations was suspended in order to protect the legitimate rights and interests of everyone, and is now being verified by the authorities. “In recent times, we have suspended online operations to protect the legitimate rights and interests of a wide range of clients by using my online channels for economic crime, which have been reported and are being investigated by the authorities. “The public security authorities are doing their utmost to investigate the situation and please be patient in waiting for the notice. The Vice-President is wanted and shares are frequently compromised. In addition to the opening of the New Orientale Town Bank, the six village banks that closed their funds on the line, the other five start-ups and major shareholders were Xu Chang's comptoirs. Photo from WeChat, Department of Operations Management, Xu Chang Chamber of Commerce and Industry, 2021. According to public sources, such as business information, the Xu Changgang comptoir was founded in November 2009 by the Xu Chang Weidu comptoir, which was founded on the basis of a partnership of rural credit unions in the former Weidu region of Xu Chang City. In terms of outward investment, the Xu Changang comptoir is a major shareholder in five village banks. The Xu Changang comptoir has a 51% share in the Upper Tsai Heemin Village Bank and the Huang Huai Village Bank in Chang City. According to information published by the Superintendence of Silver Insurance, a pilot village bank was launched in 2006. By the end of September 2020, a total of 1641 village banks had been set up throughout the country, covering 1306 counties (city, flag) in 31 provinces of the country. According to the Provisional Regulations on the Management of Commune Banks, at least one of the initiators or funders of the establishment of the Commune Bank shall be a banking financial institution, and the largest shareholder must also be a banking financial institution. In the context of this policy, from 2011 to 2016, the Xu Changgang comptoir (formerly the Weidu comptoir) became the largest shareholder of the five village banks, namely the New People's Village Bank (NSVVB) and the Haut Tsai Heungmin Town Bank. On 18 April 2022, five village banks controlled by the Xu Chan Chamber of Commerce and Industry closed online banking, mobile banking, etc. Just a week ago, the Xu Chamber of Commerce and Industry's financial department changed its personnel and the Superintendence of Silver Insurance approved Zhou Xiao Xiang as the general manager of the bank's finance department. On 5 March, the Public Security Bureau of Xu Chang City issued a Notice of Reward, which states that “Sun Zhenv has fled after the public security organs of Xu Chang City have investigated in accordance with the law on suspicion of serious economic crimes.” The Circular states that the public security organs reward RMB 100,000 Yuan for providing significant leads and assisting the police in apprehending suspects. Sun Zhenpa is from Xu Chanzhou, where he served as the director of the urban credit union and president of the Xiangzhou City Development Area and the Governor of the Xiangzhou County Rural Credit Cooperation Association. According to the official network of the Henan Supervisory Authority of the China Silver Insurance Supervisory Board, in June 2018, with the approval of Xu Changqian Superintendent, Sun Zhenfu acted as vice-president of Xu Changgang Chamber of Commerce and Industry. According to the website of the Xu Chang City Standing Committee, on 25 December 2021, the 47th session of the Xu Chang City Standing Committee of the 7th Session of the Xu Chang City People's Congress held a vote on the Decision on the Licensing of Coercive Measures against Sun Zhenv, a representative of Xu Chang City's 7th People's Congress. Has Sun Zhenv's alleged “serious economic crime” been linked to the village bank under the banner of Xu Changnon Business Bank, and is he currently at large? On 16 May, the journalist The Paper contacted Officer Choi of the Xu Chang police according to the Reward Notice, who stated that the reward notice for 100,000 Yuan was previously “defunct”. At present, the statutory representative of the Xu Chang Chamber of Commerce and Industry is Jianbao's successor in March 2021. According to business information, the registered capital of the Xu Chamber of Commerce and Industry is 1 billion yuan, with 73 current shareholders and a more decentralized shareholding. At present, the first major shareholder is Xu Changde Million Farm Company, which holds about 1.25 per cent of the shares, and it is worth noting that 25 of the 73 shareholders have been classified as untrustworthy implementers. In recent years, the Xu Chang Chamber of Commerce and Industry has experienced a high incidence of equity exports, which are currently available in 90 cases. According to China Business, in November 2021, Xu Chang Chamber of Commerce and Industry shares of 76892000 have been identified. For example, two companies, the Commissariat of Trade in the Ma's City and the Chang Guo City Business Company, were not listed as shareholders in Xu Changang's comptoirs, but each offered the Xu Chan comptoirs' shareholdings to SONG Dynasty Bank, which accumulated 45 million shares and 42,000,000 shares, respectively. It is clear that ownership by commercial banks is not subject to compliance. Article XII of the Provisional Scheme for the Management of Equity in Commercial Banks provides that: Shareholders in commercial banks may not entrust or accept other persons to hold shares in commercial banks. On April 28, 2022, the Omega District Court opened a series of eight auction announcements on the People’s Court’s network of litigation assets, the object of which was the sum of the company’s shares. Photo from Ali's auction network. The above-mentioned eight auction information is now available on the Internet auction platform, with a total of 42,000,000 shares in the stock of Xu Chang's comptoir and comptoirs, with a total assessment value of over 130 million yuan and a total start-up price of about 119 million yuan. The auction is held from 29 to 30 May. The New Wealth Group has surfaced and is suspected of illegally absorbing public deposits The stock pledge auction, stock-holding, shareholder “invisible” and some of the problems that arose in the course of Xu's business were brought to the attention of the regulatory authorities. Indeed, in January 2018, the China Banking Supervisory Board issued the Interim Measures for the Management of Equity in Commercial Banks, which regulate the management of equity and corporate governance in commercial banks. It was also that year that Xu Chang's comptoirs were punished twice by the regulatory authorities. On 7 August of that year, the Xu Chang Bank Office issued a warning to the Xu Chang farmers'comptoirs and fined them 200000 Yuan, the penalty being “inadequate implementation of the responsibilities and obligations of the governing bodies and inadequate corporate governance checks and balances”. Twenty days later, the Xu Chang Bank Office again imposed an administrative penalty on the Xu Changgang Chamber of Commerce and Industry and a fine of 300,000 Yuan, which was imposed for “infringement of the actual investment of funds through the joint venture, in violation of the law”. As a result of the Internet deposit operations carried out by various village and town banks under the banner of the Xu Changang comptoir, according to several online depositors, most of the depositories introduced by the village and town banks have higher interest rates than other banks, with an annualized rate of return of more than 4.6 per cent. The excessive cost of absorbing deposits may pose a risk to banks’ profit-seeking efforts. For example, four Henan-based town banks, which closed down their operations at this time, have been subject to administrative penalties for irregularities in the lending process. Following the closure of six village and town banks, such as the Ninmin Village Bank in Chenzhou, the Bank of Chui Heemin Village Bank and others, the launch of the Xu Chang Farmers Bank and its association with the capital behind it has generated interest among the industry. Among the “partners” closely associated with Xu Changan comptoirs, an enterprise called Henan's New Wealth Group has surfaced. It's from Eyewitness. According to business information, Henan's New Wealth Group was established in 2011 with a registered capital of 116 million Yuan in Cheng Dongxin District of Chengzhou City and operates under the heading “Investment in business, investment in business and management”. According to Caixin, Henan's New Wealth Group is linked to various village and town banks initiated by Xu Changang Business, or holds indirect shares as “hidden” shareholders; there are bankers in Henan who have revealed that the original owner of the new Oriental Town Bank was also Henan's New Wealth Group, and that the new wealth group later withdrew, holding 30 per cent of the shares by Henan's Newzheng Chamber of Commerce and Industry; the actual controller behind Henan's new wealth group, or a businessman. Henan's New Wealth Group was involved in the case of the former Vice-President of the Bank of Zhengzhou, Joanne, who, according to public reports, was sentenced to 14 years' imprisonment for bribery in October 2018. The first-instance judgement revealed that from 2007 to 2016, Joanne took advantage of his position to assist a company controlled by the Chairman of the Henan New Wealth Group, Lu, in lending to the Bank of Zhengzhou, and subsequently demanded a cumulative sum of over 2,394,000 yuan from Lufoso, which was returned after the incident. In terms of outward investment, Henan’s New Wealth Group is a major shareholder in three enterprises, each holding 51 per cent of their shareholdings: Henan’s New Ricky Investment Development Corporation, Henan’s New Business Development Corporation, and Henan’s New Silver Investment Development Corporation. The photos are from Eyewitness. Paradoxically, all three companies held by Henan's New Wealth Group were cancelled in July 2020. Henan's New Wealth Group was also cancelled in February 2022. Just two months after the cancellation of the New Wealth Group in Henan, six village and town banks, such as the Nizhengmin Village Bank in Jinzhou, closed access to funds such as cash withdrawals and transfers. On 24 April, the Crown Prince, who had already reported to the police, called the Xu Chang City Public Security Bureau 110 to inquire about the progress. In the voice recording, 110 staff members indicated that, following a preliminary investigation by the police, the Henan New Wealth Group, which cooperated with the relevant village and town bank, was suspected of illegally absorbing public deposits, and that the police were currently conducting further investigation and forensics. Staff members also send copies of ID cards, bank accounts, deposit and transfer vouchers, whether or not to purchase property, etc. to the police, and can communicate the progress to other depositors “to cooperate with the public security authorities in their investigation and taking evidence”. Some of the depositors were concerned that the money deposited in the relevant village bank was being channelled into the purses of some of the related businesses. On 22 April, the Central Bank opened the central bank branch and the Superintendence of Silver Insurance issued an announcement to the effect that the Bank of New Orientale town had paid its deposit reserves in full and had taken part in deposit insurance, and that the legal deposits of depositors were protected by law. In accordance with the Deposit Insurance Regulations, in order to prevent and mitigate financial risks, commercial banks in our country are required to be insured against deposit insurance, and the depositor's deposit principal and interest, when combined, may be paid from the insurance fund up to a maximum of 500,000 Yuan, and the excess of the limit may be paid by law from the insured institution for the liquidation of the property. At present, the closure of online services by the banks of villages and towns in Henan and elsewhere has attracted the attention of the financial regulatory authorities, and on 18 May the Securities Times reported that the Bank and the Bank of People's Republic of Korea have instructed the Board and the Central Branch of the Bank of Chengzhou to exercise supervisory responsibility and to cooperate with the local party committee government and relevant departments in their proper handling. It is known that the relevant village bank shareholders, the Henan New Wealth Group, absorb public funds through internal and external collusion, the use of third-party platforms and money brokers, and are suspected of committing offences against the law, and that investigations have been opened by the public security organs. On 18 May, The Paper learned from the Public Security Bureau of Henanzhou that the case concerning the village bank is still under full investigation.

Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.

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