Follow-up of Henan Red Code Incident: Henan New Fortune Group is suspected of swept away 40 billion yuan!

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On June 20, many village and township banks involved in the “red code” incident took new actions. The bank issued an announcement saying that online customer fund information registration will be launched from now on.
Time Finance inquired that among the six banks involved, four in Henan—Yuzhou Xinminsheng Rural Bank, Shangcai Huimin Rural Bank, Zhecheng Huanghuai Rural Bank, and Kaifeng New Oriental Rural Bank all issued announcements on their official websites saying : The bank will start the registration of online customer funds information from now on. All customers who cannot handle business normally after the bank’s online trading system is closed are required to register. Please fill in the relevant information completely, truthfully and accurately.

According to reports, 4 rural banks in Henan and 2 rural banks in Anhui were exposed to the difficulty of depositors withdrawing money as early as 2 months ago. Recently, some media have exposed that some depositors’ health codes have become red codes for no reason.
On June 18, the Xuchang Municipal Public Security Bureau informed that the major shareholder of the village bank involved, Henan New Fortune Group Investment Holding Co., Ltd. (“Henan New Fortune Group”), was suspected of serious crimes, and the police had arrested a group of suspects. Subsequently, the Henan Banking and Insurance Regulatory Bureau and the Henan Provincial Local Financial Supervision Bureau also responded that financial management departments at all levels closely cooperated with the public security organs to carry out investigations.
This matter has aroused great public opinion. How much black material is hidden in Henan New Fortune Group, where will the red code incident be involved, and how will depositors’ deposits be guaranteed?
Some netizens discussed: “Isn’t the bank paying less than 500,000 yuan?” “You can also choose not to be worthy, the autonomy is in the bank” “The bank that needs to participate in the insurance will pay the compensation, and the village bank should not participate” “The maximum compensation for bank bankruptcy is 300,000 yuan, understand. a bit.”
In response to many doubts, lawyer Zhang Yue of Beijing Jingan Law Firm told Time Finance that according to the “Regulations on Deposit Insurance”, commercial banks should take out deposit insurance, and the deposit insurance should implement a limit payment, with a maximum payment limit of RMB 500,000, and “bank Deposit insurance is mandatory”.
In addition, according to the Commercial Bank Law, when a commercial bank goes bankrupt and liquidates, after paying the liquidation fees, wages owed to employees and labor insurance fees, the principal and interest of individual savings deposits shall be paid first. Zhang Yue said, “So if the bank goes bankrupt, the deposit insurance can first get up to 500,000 yuan in insurance benefits, and then depositors can still participate in the distribution of the remaining money after the bank has paid off various expenses.”
Another bank practitioner told Time Finance that the compensation of 500,000 means that the deposit insurance system stipulates that if there is a bank failure or bankruptcy, the compensation will be 500,000. But for so many years now, only a few banks have declared bankruptcy, and there are corresponding policies to take over. Therefore, “Compensation of 500,000 is the bottom-line plan, and there is a high probability that depositors can protect their principal and interest.”

“Red Code” Suspected of Abuse of Public Power
On June 13, a number of Henan rural bank depositors reported on the Internet that after coming to Zhengzhou, they tried to withdraw money and defend their rights offline. As a result, the health code was assigned a red code, and they were immediately taken to the relevant isolation point by relevant personnel. In addition to these out-of-town savers who visited Zhengzhou, there were also savers who were out of town, did not visit or did not plan to visit Henan at all whose health codes were converted to red codes.

Subsequently, many mainstream media reported that Henan depositors were given red codes. For a while, public opinion on the Internet was boiling. On the one hand, public opinion accused the health code of not being used for other purposes at will, and that it could not be a transfer of personal privacy to rights; .

As the incident continued to ferment, the incident of “Henan Rural Bank depositors were forcibly assigned red codes” was continuously pushed to the hot search on Weibo. For several days, #HENAN RED CODE#, #HENAN Rural Bank depositors were forcibly assigned red codes#, # More than 40 micro-topics, including Henan depositors Red Code Suspicion# and #Henan, said they did not know who is in control of Red Code#, aroused the attention and heated discussion among netizens.

The heat of the incident continued to heat up, and then several property owners in Henan reported that some property owners who had stopped construction were also given red codes before, and they were even required to write a letter of guarantee to ensure that they would not go to high-risk areas and relevant departments, etc. . The public opinion of the “Henan Fu Red Code” incident once again fell into a whirlpool of public opinion.

According to the Southern Metropolis Daily, Zhengzhou 12320 health hotline, it is not clear which department carried out the code assignment.

On June 17, the Zhengzhou Municipal Commission for Discipline Inspection and Supervision issued a message: In response to the recent issue that some village bank depositors have been assigned red codes, the Zhengzhou Municipal Commission for Discipline Inspection and Supervision launched an investigation and accountability procedure, and the Zhengzhou Municipal Commission for Discipline Inspection and Supervision launched an investigation and accountability procedure. Disorders of the “Administrative Measures for Controlling Health Codes” will be dealt with seriously in accordance with regulations, disciplines and laws.

On the same day, the Henan Provincial Epidemic Prevention and Control Headquarters stated that all cities and counties should strengthen the management of health codes, and deal with serious consequences caused by improper management of health codes. The health code is only used for epidemic prevention and control to serve the health of the people. It is never allowed to be used outside of the circumstances stipulated by the national and provincial epidemic prevention and control headquarters. Add or delete the health code risk personnel database.

Fear swept away 40 billion
In January 2021, the China Banking and Insurance Regulatory Commission and the People’s Bank of China jointly issued the “Notice on Regulating Commercial Banks’ Personal Deposit Business through the Internet” (the “Notice”). The “Notice” clarifies that commercial banks are not allowed to conduct fixed deposits and fixed-life dual-convenience deposits through non-self-operated online platforms.
Some online depositors successively discovered in April that the deposit products of Yuzhou Xinminsheng Village Bank, which were purchased through the opening of electronic second-class accounts on WeChat mini-programs such as 360 Finance, Duxiaoman, and Jingdong Financial Platform, could not be withdrawn or transferred normally.
According to media reports, when online depositors make deposits, the contract page states that it is a deposit, not a wealth management product; the signatory of the contract is also a bank, not a third-party institution or bank shareholder.
Foreign depositors cannot see the deposit products in the mobile banking, but can only purchase them in the WeChat applet. At that time, the annualized interest rate of one-year deposits for depositors exceeded 4.8%, which was relatively high.
In June, some depositors were going to Zhengzhou to defend their rights. Some depositors scanned a location code with the address “Southwest Exit of Zhengzhou Station”, and their health code suddenly turned red. Then some depositors who did not arrive in Zhengzhou also showed their health code as red. .
On the afternoon of June 18, the Public Security Bureau of Xuchang City, Henan Province issued a police report on Henan New Fortune Group Investment Holding Co., Ltd. (hereinafter referred to as: Henan New Fortune Group). According to the report, since 2011, a criminal gang headed by the company’s actual controller, Lu Mou, has been suspected of using village banks to commit a series of serious crimes. A number of criminal suspects have been arrested, and a number of funds and assets involved in the case have been seized, seized, and frozen in accordance with the law.
On the same day, the relevant person in charge of the Henan Banking and Insurance Regulatory Bureau and the Henan Local Financial Supervision Bureau stated that financial management departments at all levels closely cooperated with the public security organs to carry out investigations, and the online transaction systems of village banks such as Yuzhou Xinminsheng were manipulated and used by Henan New Fortune Group. The facts of the crime have been preliminarily identified, and the relevant funds are being investigated. At the same time, the relevant village banks are instructed to actively cooperate with the public security organs in the investigation and handling of cases, do a good job in the registration and follow-up of fund information, protect the legitimate rights and interests of financial consumers in accordance with the law, and remind the relevant people to cooperate in the information registration work.
According to the investigation of Netease Qingliu Studio, Henan New Fortune Group, represented by the actual controller Lu Yi, not only holds the equity of Luoyang Bank, Hebei Bank and other regional banks, but also participates in at least 6 rural commercial banks and village banks. Possibly 13. Henan New Fortune Group is suspected of transferring funds amounting to 39.7 billion through internal and external collusion, the use of third-party platforms and fund brokers.
The Zhengzhou Intermediate People’s Court disclosed in a criminal judgment issued on September 20, 2018 that Lu Yi had borrowed more than 9 million yuan from Qiao Junan, the vice president of Zhengzhou Bank, in order to seek a loan. Later, in order to obtain more loans, he paid 2,300 yuan in bribes. More than 10,000 yuan, and the two also started a business of eating interest margins together. Qiao Junan was responsible for obtaining bank approval, and Lu Yi borrowed money and then lent it to some affiliated companies. In this judgment, Lu Yi’s identity is the chairman of the new wealth group.
Baoshang Bank previously guaranteed 100% principal and interest
Since the founding of the People’s Republic of China, there have been only a handful of bank failures in China. In 1998, Hainan Development Bank, established in 1995, was unable to “rescue” the bank due to a run on its depositors. Eventually, the bank declared bankruptcy and was subsequently taken over by ICBC. In 2012, Shangcun Rural Credit Cooperative in Suning County, Hebei Province officially entered bankruptcy proceedings.
Baotou Bank is the most recent bankrupt. In February 2021, the Beijing No. 1 Intermediate People’s Court issued a “Civil Ruling” “(2020) Jing 01 Po No. 270”, ruling that Baoshang Bank Co., Ltd. went bankrupt.
The bank is a city commercial bank in Baotou City, Inner Mongolia. It was established in 1998. The major shareholder is Tomorrow Group, which holds a total of 89% of the equity of Baoshang Bank. It was overdue and difficult to return for a long time, which led to a serious credit crisis in Baoshang Bank, which triggered the statutory takeover conditions and was taken over in accordance with the law.
Subsequently, Baoshang Bank was taken over by the central bank and the China Banking and Insurance Regulatory Commission. The central bank and the China Banking and Insurance Regulatory Commission held a press conference and stated that after taking over Baoshang Bank this time, the deposit insurance fund and the central bank will be used to fund the acquisition and undertaking, and the various types of Baoshang Bank will be taken over. Creditors give adequate protection. 100% full guarantee is given to the principal and interest of individual customers and corporate and institutional customers of 50 million yuan and below. For the principal and interest of the same large creditor of more than 50 million yuan, the net amount of creditor’s rights is guaranteed in advance, and the average protection ratio is expected to be about 90%. The above-mentioned safeguard standards protect the legitimate rights and interests of various creditors to the greatest extent possible.
At present, Baoshang Bank’s business has been undertaken by Huishang Bank and Mengshang Bank. The original Baoshang Bank’s personal and institutional deposit and loan business and cash withdrawal business can be completed through these two banks. (Beijing Time Finance, Chen Shiai)

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