This is a followup report on the troubled China Merchants Bank. GNews reported on Friday that the oversea fund transfer was suspended by China Merchants Bank. Even though the official announcement was taken down from its website, some bank customers confirmed the suspension.
Screenshots provided by a customer in Hong Kong show that two fund transfer attempts for $5000 and $3000 were rejected. In addition, The Hong Kong dollar to the US dollar exchange rate became 45:1 during online transactions whereas the official exchange rate is 7.83:1.
Is this the beginning of the imminent collapsing of the HK dollar?
All Chinese banks are controlled by the families of the Chinese kleptocrats or their proxies. The president of China Merchants Bank Tian Huiyu is Wang Qishan’s confidant. Wang is China’s vice president and one of the top kleptocrats.
China has a remarkably high savings rate due to cultural traditions and lack of social safety net. The household savings rate was 36.1 in 2016. But all the hard-earned money people put in the banks were mismanaged or stolen by the kleptocrats.
China Merchants Bank was previously controlled by Wu Xiaohui, who married the granddaughter of Den Xiao Ping. Wang Qishan had his eye on this bank and eventually sent Wu to jail in order to place Tian Huiyu as the head of the bank.
Wang Qishan now controls these major banks besides other smaller banks:
- China merchants Bank via Tian Huiyu
- Bank of China via Tian Guoli
- China Construction Bank
- Agricultural Bank of China
- Bank of Shanghai