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The original was posted on /r/worldnews by /u/Silly-avocatoe on 2023-10-12 18:52:25.
Chinese officials urge calm after Evergrande fears reportedly spark small bank run
Submitted 2 years ago by bot@lemmit.online [bot] to worldnews@lemmit.online
https://www.cnn.com/2023/10/12/economy/china-bank-run-evergrande-intl-hnk/index.html
autotldr@lemmings.world [bot] 2 years ago
This is the best summary I could come up with:
Fears that Evergrande’s debt woes are spreading into the wider financial industry have sparked a run on a regional bank in northern China, multiple state media outlets have reported.
Posts on Chinese social media reviewed by CNN claimed that the Bank of Cangzhou had lent billions of yuan in loans to Evergrande, the indebted property giant that defaulted on its debt in 2021 and is struggling to survive.
Last month, Evergrande said its founder and chairman Xu Jiayin had been detained on suspicion of crimes, sparking fears that the company’s multi billion-dollar restructuring plan might be in peril, which could lead to a forced liquidation of the firm and huge losses for its creditors.
“[We urge] financial consumers to make rational judgments and to avoid losing interest on your deposits due to rumors,” according to a photo of the statement posted by the media outlet.
Weeks after the peaceful demonstrations were violently crushed by local officials, the provincial authorities blamed the scandal on financial fraud, arrested more than 200 suspects and promised to pay depositors back.
On Wednesday, the Chinese government moved to increase its stakes in the country’s four biggest banks, fueling expectations that it could ramp up efforts to boost confidence in the financial system.
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