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Beijing (Failed) Protests Over Collapse of China’s Peer-to-Peer (P2P) Industry

A P2P Crisis: investors who have lost their savings tried to take their grievances to the street.

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Image via Tech Sina (http://tech.sina.com.cn/i/special/forefront/p2ppl/).

The regulatory crackdown on Chinese online lenders caused a climate of heightened tension in Beijing today, where investors who have lost their savings were trying to take their grievances to the street.

Recent crackdowns on China’s online lending industry have caused some unrest in Beijing today, where planned gatherings by victims who were trying to draw attention to their misfortune were immediately shut down by authorities.

Companies they’ve invested in were either closed down, or the directory boards have simply abandoned their business and have taken off (跑路).

Today, WeChat and Weibo have been buzzing with rumors of people being victimized by the P2P crackdown attempting to gather and protest in various places – one of them being in Beijing.

But local authorities and security guards have been quick to shut down protests, allegedly even barring some travelers from entering the city.

P2P Chaos

China’s P2P industry has seen a quick rise and fall over the past year, causing some panic and chaos.

Earlier this week, China’s New Fortune magazine reported of one case where an investor had just invested 360,000 RMB (±US$52,700) into P2P platform Guojinbao (国金宝), when they discovered the platform was already abandoned the day before, and there was no way to get their money back. It is just one among many recent cases.

Peer-to-peer (P2P) lending (defined asa method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary“) has experienced unprecedented growth in China over the last 10 years; hundreds of microloan lenders have sprouted up, in place of traditional state-owned banks, to provide funding and capital to everything from companies to individuals.

For many Chinese investors, P2P lending is an apparent attractive alternative investment. Especially because, according to a 2015 case study by the Associate of Chartered Certified Accountants (ACCA), only 9.6% of Chinese people are able to get proper bank loans.

Since China’s mushrooming online lending companies were largely unregulated before, the rise of P2P in China has also given way to a great number of ‘troubled’ companies and lending scams.

(Note: to understand more about the rise and fall of China’s online P2P lending, read this insightful overview by Jiefei Liu at Technode. Also check out our background article “The “Wild West” of Banking in China: Andrew Collier on China’s Shadow Banking” here“.)

As of this year, China’s central government has enacted stricter rules to protect against these kinds of shady business dealings, which have already affected hundreds of thousands of investors.

Stricter monetary policies and renewed regulations have led to a wave of closures this year.

On August 2, TechNode already reported about responses to the crackdown, with people protesting in front of police stations, organizing online investor rights groups, and making collective efforts to pressure authorities to get their money back.

P2P Protests

These responses now seem to intensify. The overseas Chinese community website Boxun reported about a planned protest march in Beijing on August 6, among others near Ritan park, which was cracked down by local authorities.

Alleged bystander videos showed how people were forcefully taken away by police (video and video and video) or how people were questioned on the train to Beijing (video) (NB! We have not been able to verify if these videos were indeed recorded today, we just know that the people posting them on WeChat/YouTube claim they are).

There were also reports of people being taken away on public buses. “Have truly never seen anything like this in Beijing. We counted 120+ buses at site of the (failed) protest against P2P lending fraud, stretching far as the eye can see – all the way to Diaoyutai. Cops nap, wait in each. Petitioners rounded up, shipped off inside. The SCALE..!,” Becky Davis (@rebeccaludavis), China Correspondent for Agence France-Presse, tweeted on her timeline.

A Twitter account named “P2P China Right” (@P2Pweiquan) posted: “As a result of the government’s powerful police force and strict guard, hundreds of buses are waiting at the gate of the CBRC, About 10000 people were forced to take the bus. Announcing: the 8/6 event failed!”

Although today was an especially charged day, it is not the first time Chinese authorities are cracking down on P2P platforms. In October 2015, Chinese authorities already introduced new regulations to reduce lending fraud.

In 2016, more P2P lending companies closed operations as a result of these new regulations. Most notably was Ezubo, a ponzi scheme disguised as a peer-to-peer lender, which allegedly defrauded more than 900,000 people.

By Manya Koetse, Miranda Barnes, and Ryan Gandolfo.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Stories that are authored by the What's on Weibo Team are the stories that multiple authors contributed to. Please check the names at the end of the articles to see who the authors are.

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China Insight

Devastating Rain and Floods in Henan – A Hashtag Timeline

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The torrential rainfall and floodings in China’s Henan Province have completely overwhelmed the region, with dozens of cities and villages seeing massive disruption to everyday life. What’s on Weibo lists the main Chinese social media hashtags to go trending over the past week during the deadly floods.

Disastrous rain and floodings continue to plague China’s Henan province, where Zhengzhou city and surrounding towns and villages have been dealing with the strongest rainfall ever recorded.

Henan, home to 99 million residents, has seen extreme rain since Friday, July 16, leading to floods and critical situations in the region on July 20, when the city of Zhengzhou was hit especially hard.

According to reports on July 24, the death toll from the torrential rains has risen to 56. More than a million of people were relocated and over 7,5 million people are affected.

In this blog, we will list some of the main stories relating to the floods in Henan that have gone trending on the Chinese social media platform Weibo over the past week. (Note: Still being updated).

 

TRENDING TIMELINE

 

July 20

 

PASSENGERS TRAPPED IN ZHENGZHOU SUBWAY (Hashtag: #郑州地铁5号线一车厢多人被困#)

On the late afternoon of July 20, a terrible flood occurred around the Wulongkou parking lot of Zhengzhou Metro Line 5. On Tuesday night, around 18:00, the water burst into the underground area between Shakou Road station and Haitansi station, trapping a train with approximately 500 passengers in it. The critical situation led to terrifying images and videos of passengers caught in the carriage, the water reaching up to their necks. Due to the lack oxygen in the carriage, many people fainted.

Image via Chinatimes.

After several hours, rescuers were able to get people out through the roof of the carriage. Although hundreds of people were saved, at least twelve did not survive. Footage that circulated on social media showed lifeless bodies lying on the floor of the station during the rescue operation.

The incident is one that kept generating online discussions after it happened, with survivors telling their stories and saying it felt “like the Titanic sinking.”

Around 20:00, twelve people were trapped in at the subway line 14 Olympic Sports Center station, with the water running up to two meters high. The fire department was able to rescue all twelve.

 

ZHENGZHOU HOSPITAL POWER OUTAGE (Hashtag: #暴雨中的郑州医院#)

The First Affiliated Hospital of Zhengzhou University, one of the biggest hospitals in the world, ran into major problems on July 20 when there was a power outage due to major flooding.

On social media, Weibo users cried out to request help for resources to rescue patients. This led to city residents coming in to bring electricity generators. The next day, on July 21st, the hospital’s critical patients were all evacuated to other medical facilities.

 

July 21

 

STRANDED PASSENGERS AT ZHENGZHOU EAST STATION (Hashtag: #郑州东站 音乐是有力量的#)

Hundreds of passengers were stranded at Zhengzhou East Station when all services were suspended after 2:00 AM on July 21st. A youth orchestra group decided to pull out their instruments and perform in the station’s main hall.

The kind gesture moved many Chinese social media users to tears.

 

CONTROVERSY OVER HENAN REAL ESTATE COMPANY ‘HIGHLAND’ ADVERTISEMENT (Hashtag: #康桥地产致歉#)

An ad by the local real estate company Kangqiao Real Estate promoting its ‘high lands’ properties led to online controversy. The Kangqiao Group poster highlighted the height advantage to its real estate locations, using the slogan: “Highland – live in the highland and only let the wind and rain be your scenery.”

The ad started making its rounds while Henan was in the midst of a huge rainstorm and flooding. Many deemed the timing of the ad insensitive, as well its wording. “Let the wind and rain just be your scenery” could also be understood as staying away from the hardships experienced by so many in Henan. Many felt the company was taking advantage of the disaster in Henan to promote its own real estate.

On July 21, Kangqiao Real Estate issued a statement of apology, saying that the advertising was canceled and that those responsible for its content would be removed from their position.

 

BABY RESCUED FROM DEBRIS (Hashtag: #三个月大婴儿被埋废墟一天一夜获救#)

A 3-month old baby was pulled from the ruins of a collapsed house in Xingyang, Zhengzhou. The infant reportedly was rescued a day after the building collapsed to landslides caused by the heavy rainfall. The child was sent to the hospital. The child’s mother was initially said to be still missing. BBC later reported that the mother died after bringing her baby to safety. The child is unharmed.

 

FIREFIGHTER COLLAPSES AFTER RESCUE (Hashtag: #郑州消防员救出最后一个孩子后累瘫#)

Around 14:30 in the afternoon, a fire erupted in a residential building in Zhengzhou, leaving 23 residents in a dangerous situation. Local firefighters managed to carry out all residents, mainly elderly and children. Due to the extreme weather conditions and high temperatures in the building, one firefighter collapsed at the scene. His colleagues immediately provided medical assistance.

 

ZHENGZHOU INSTALLS TEMPORARY PUBLIC WATER TAPS (Hashtag: #暴雨后郑州街头安装临时水龙头#)

As the majority of residential buildings in the city of Zhengzhou were cut off from water after the torrential rains and floodings, the city installed temporary water taps on July 21st.

 

July 22

 

WEIHUI AND HUIXIAN EMERGENCY SITUATION (Hashtag: #卫辉暴雨#, #辉县暴雨#)

In the early morning of July 22, the people in Weihui sounded the alarm over the situation in their town. Around 4.00 AM, water started flooding into people’s homes due to excessive rain and overflowing reservoirs.

As the rain still continued, water levels kept rising up to waist level and there was a lack of sandbags. A similar situation unfolded in the Huixian area.

Weihui is a county-level city with about 480,000 inhabitants, Huixian has approximately 790,000.

 

HUIXIAN HOSPITAL FLOODED (Hashtag:#辉县暴雨#)

Some 300 patients and staff at the local Gongji Hospital (辉县市共济医院) were trapped by the water. With power being cut off, not enough food available, and not enough manpower, the staff started reaching out for help via social media.

 

ELECTRICITY TO BE RESTORED IN ZHENGZHOU (Hashtag: #郑州力争今晚恢复高层居民小区供电#)

The Zhengzhou local government held a press conference on the afternoon of July 22 that they expected electricity in the city to be partially restored on Thursday night.

 

ONLINE ANGER OVER COMPANIES USING “HENAN FLOOD MARKETING” (Hashtag: #多家地产公司借暴雨营销#)

After the online outrage over a local real estate company promoting its ‘highland’ property in light of the floodings, other companies also sparked controversy for using the Henan floods as a marketing strategy.

Two local companies selling parking space used the devastating floods, in which countless cars were flooded, as a way to promote their supposedly safe parking lot. The companies, Yongwei (永威) and Yaxing (亚星), were denounced for promoting their company in this way at a time when the entire country was still praying for Henan and going out to help those in need.

 

July 23

 

CRITICAL DAY FOR XINXIANG FLOODS (Hashtag: #新乡大块镇上万村民被洪水围困#)

Xinxiang, a city of 5.8 million people just 70 km north of Zhengzhou, also saw extreme rain and floods this week, leading to a critical situation on July 23. Efforts to block the Wei river from flooding villages near Hebi failed. Thousands of locals were trapped without water and electricity.

Global Times reported that reporters tried to get to the hardest-hit counties in Xinxiang on Thursday morning, but were informed that the situation was so severe that teams without boats could no longer get in. Firefighters and rescuers used forklift trucks and rubber boats to evacuate the residents from the flooded villages in Xinxiang.

 

CHINESE SPORTSWEAR BRAND ERKE BECOMES ONLINE HIT AFTER DONATING 50 MILLION (Hashtag: #鸿星尔克的微博评论好心酸#)

The domestic sportswear brand named Erke (鸿星尔克) donated 50 million yuan ($7.7 million) to the Henan flood. This attracted a lot of attention on Chinese social media, since Erke is a relatively small and low-profile brand that seemingly has not been doing too well over the past years.

After people found out that the company donated such a high amount of money to help the people in Henan despite its own losses, its online sales went through the roof – everyone wanted to support this generous ‘patriotic brand.’ While netizens rushed to the online shops selling Erke, the brand’s physical shops also ran out of products with so many people coming to buy their sportswear. One female sales assistant was moved to tears when the store suddenly filled up with so many customers.

 

ONE-LEGGED MAN COMES TO THE RESCUE IN XINXIANG (Hashtag: #独腿小哥自发驰援新乡转运老人孩子#)

A man with one leg attracted attention on Chinese social media when footage and images came out of the Puyang resident helping the elderly and children in Xinxiang get away from the water. The young man pulled a boat and made many trips to get people across the water. The man’s hometown of Puyang is about two to three hours from Xinxiang – he came down to Xinxiang to help locals out.

 

July 24

 

ENORMOUS LOSS OF CROPS AND LIVESTOCK (Hashtag: #暴雨后百余只羊仅找回一只#)

With ongoing rescue efforts in the region, more ‘after the rainstorm’ videos and social media posts came out on Saturday showing the devastating consequences of the heavy rainfall and floods. Many villagers have lost their homes, crops, livestock, and belongings.

People’s Daily reported that one family in Xingyang county that had more than a hundred sheep, only had one animal left after the floods.

 

THE FLOODS IN HEBI (Hashtag: #鹤壁暴雨#)

The Olympics have started, and many of the trending topics on Weibo were no longer related to the floods on Saturday. Many Weibo commenters were therefore calling out to generate more attention for the situations in Henan’s rural areas, particularly in Anyang, Xinxiang, and Hebi, which are still underwater and are seriously affected by the floods.

“We’ve been doing online volunteer work in the disaster area in Henan, and the reality is far more serious than we can even imagine,” one Weibo user commented.

This article will be updated later.

By Manya Koetse (@manyapan)

With contributions by Miranda Barnes

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Digital

How Social Media Is Speeding Up Zhengzhou Flooding Rescue Efforts

Chinese social media are speeding up local rescue efforts after Zhengzhou saw the heaviest rain in 1,000 years.

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Social media is utilized as a tool in the response to the floodings in Henan province. Once again, Weibo facilitates active public participation to provide immediate assistance to the people facing this natural disaster. 

On Tuesday, July 20, heavy rainfall caused major disruptions in the central province of Henan. The amount of rain over the last three days in Zhengzhou is reported to be the same as what it would usually receive in an entire year.

It is reported that Henan Province has initiated the highest-level emergency response to floods, and China’s State Flood Control and Drought Relief Bureau has dispatched a workgroup to Henan, initiating level III emergency response rescue work.

Since the evening of July 20, news and information streams on the heavy rains and floods have been dominating Chinese social media. In the midst of the disastrous events, Weibo has become an online space for people seeking help, those disseminating information on available resources, and for other related activities that help netizens engage in emergency management and accessing information.

The volume of such messages is huge, with thousands of netizens seeking ways to help speed up rescue work and actively contribute to the emergency relief efforts.

The organically improvised response protocol on social media includes the following guidelines:

  • Verify, summarize, highlight, and spread online help requests posted by people from different locations
  • Remind people to delete help-seeking posts once they have been rescued or have found assistance.
  • Disseminate relevant knowledge relating to emergency care and response, and public health information, such as how to deal with different disaster scenarios, warning people about the safety of drinking water during floods, etc.
  • Share information regarding mental health and psychosocial support during the different phases of the disaster.

 

When posts of people trapped by the heavy rain started to be published on Weibo, many online influencers, no matter what subject they usually focus on, participated in spreading help-request posts that were not getting a lot of online attention.

Erdi 耳帝, a music influencer with nearly 15 million fans on Weibo, has been retweeting the online posts of people asking for help since the night of July 20.

The social media influencer Erdi has been kept retweeting asking-for-help posts since the night of July 20.

An example of such an online emergency help request (求助贴) is the following post of July 21st, 17:15 local time:

Our entire neighborhood is cut off from water and electricity, the water level is rising to chest level, and we currently have no drinking water at the moment. Need help urgently.

Status: Verified, pending rescue.
Seeking help: Wu M**, phone 13*****27
Number of people to be rescued: five or six thousand
Location: Zhengzhou City, Henan Province, Zhengdong New District, Shangdu / Xuzhuang Street intersection, east courtyard of Shangdu Jiayuan Muzhuang district (we can’t exit the building, there is no water, no electricity, no supplies, and it’s been 24 hours)

Once people who have been trapped by the water are rescued, the user who published the post will delete the original post to make sure other emergency posts are also noticed and disseminated.

Some Weibo users engage in organizing scattered online information in one single post, e.g. posts regarding local electricity leakage, making this information more accessible and easier to understand.

One post that was among the top-shared ones this week, is a picture that includes contact information of rescue teams of both officials and civilians. When realizing that some people were unable to upload the picture due to poor internet connections caused by the heavy rain, an up-to-date and full-text version was quickly shared by netizens.

Some Weibo users listed various methods to get assistance for hearing-impaired and deaf-mute people affected by the floods, advising people to download various apps to help to communicate and translate.

Besides the more general practical advice and emergency action plans shared by Chinese social media users, there are also those who pay attention to the importance of personal hygiene during these times. Some are sending out information about menstrual hygiene needs during floods, reminding women to frequently change sanitary pads and try to keep the genital area clean and dry due to the risk of infection. A hashtag related to menstruation during the flooding momentarily ranked fifth in the top search lists (#河南暴雨 如果你出在经期<).

Information on mental health support is disseminated all across social media.

People also try to provide mental support in other ways. A student orchestra spontaneously performed at the Zhengzhou station, where dozens of passengers were left stranded in the night. The video clips of the performance went viral, with the young musicians playing two widely-known songs, “My People, My Country” (我和我的祖国) and “Ode to the Motherland” (歌唱祖国). Many social media users shared the clips and expressed how the performance moved them to tears.

Some video clips that show how ordinary people save ordinary people amid such a natural disaster have also been widely shared. One video shows citizens of Zhengzhou standing in a line and use a rope to pull people from an underground floor where they were trapped by the water flooded.

In all the aforementioned ways and many more, Weibo has become a public platform for Chinese people to respond to the Henan disaster, efficiently communicate and keep track of help requests, organize and disseminate related information, and provide access to timely knowledge and relevant advice.

With so many online influencers and ordinary netizens voluntarily joining in, the online information flows are quickly circulating, allowing for necessary public communication channels while other resources and communication methods are still overwhelmed or in the making. The last time Weibo was used as an efficient emergency communication tool was during the early days of the COVID19 outbreak in Wuhan.

“Please stand strong, Zhengzhou” and “Hang on, Henan,” many commenters write: “Help is underway!”

Also see our previous article on the situation in Zhengzhou here.

By Wendy Huang

Spotted a mistake or want to add something? Please let us know in comments below or email us. Please note that your comment below will need to be manually approved if you’re a first-time poster here.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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