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"Bank Runs In China! Millions Rush To Get Their
Money Out Of The System As Cash Shortage Begins"
by Epic Economist
"China’s banking sector is in a total and complete mess right now. Millions of Chinese citizens are desperately rushing to get their money out of the system as fears of a bank collapse continue to rise. New reports are warning that bank runs are sparking unprecedented chaos all across the country, given that many savers just discovered that they are at risk of losing everything. The country’s growing economic and financial instability is threatening to trigger a ripple effect all across the planet, making global financial markets edge closer to a massive meltdown. That ultimately means that not only the Chinese could be financially wiped out overnight - the whole world is actually moving towards another historic downturn, and as bubbles burst and markets crash, we're all in danger at this point.
Since the start of 2022, a series of Chinese banks have suspended cash withdrawals without giving any explanation to their customers, raising fears that a much bigger financial problem could be looming as the nation’s real estate sector crashes and the rate of loan delinquencies continues to soar. There is no official data reporting the total amount of funds that bank depositors are unable to withdraw yet, but experts estimate that hundreds of billions of yuan are being withheld. The latest numbers showed that in April alone, over 400,000 banking customers across China were unable to access their savings.
Of course, in a nation of over 1.4 billion people, that’s a drop in the ocean of the Chinese vast banking system. However, experts say that what is exposed could only be the tip of the iceberg. Since late last week, bank runs have started to accelerate all over China. While millions of Chinese people remain unable to access their bank deposits since January, many others are rushing to get their money out of the system as soon as possible, but most of them are having difficulties when trying to withdraw cash from their bank accounts.
Local reports expose that “some banks will only serve a limited number of customers per day, some banks limit each client’s withdrawal to no more than 1,000 yuan and others closed their branches. Even the ATM machines are empty”. According to Hao, a resident in Longgang district in Shenzhen, freezing accounts is a method banks use to stop people from withdrawing cash.
China's gigantic real estate sector, which accounts for as much as 30% of its GDP, is facing a devastating crash ever since the country’s biggest property developer, Evergrande, became insolvent. Right now, global financial markets are on edge as the world’s largest economies face the burst of housing bubbles while stock markets crash. The meltdown of the Chinese banking sector can cause a domino effect of systemic failures and a credit crunch, increasing the possibility of a global financial crisis in the fourth quarter of 2022.
Even though many Americans may think that what’s going on in China will never occur in the U.S. since China’s main banks are state-owned, according to the financial expert and best-selling author, Robert Kiyosaki, that possibility is not so far removed. Millions of American families are at risk of seeing their savings disappearing overnight due to their accounts’ high exposure to asset bubbles and soaring inflation, he alerted. In other words, as social and economic disorder continues to spread across the planet, soon, we could be the ones seeing our savings suddenly vanishing from the system."
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