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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.

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China Insight

Noteworthy Weibo Moment: Qingdao Government Account Shows Support for LGBT Community

“The best official account post I’ve ever seen on Weibo.”

Wendy Huang

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Some netizens are moved to tears to see an official government account making a public statement in support of the gay community.

Just a day ahead of the 2019 International Day Against Homophobia, Transphobia, and Biphobia (May 17), a Qingdao government social media account has attracted the attention of Chinese netizens for showing support to the gay community.

On the night of May 15, the Information Office of Qingdao Municipal Government published the noteworthy post on its official Weibo account Qingdao Fabu (@青岛发布), which has over 3,8 million followers.

“In a world of equality, let all people turn away from homophobia” (“在平等世界里,让所有人不再恐同”), the post said, commenting on the recent trending news of a 15-year-old boy who came out as gay and posted a suicide note on his Weibo account.

The incident shows us the difficulty and hopelessness homosexual people are suffering. The world should be equal and free, and as the International Day Against Homophobia (#517不再恐同日#) is nearing, let’s call on the people around us to express our love of equality and kindness,” the post said.

Within a day after it was published, the Qingdao Fabu post was shared over 30,000 times and received more than 23,000 likes.

 

A Weibo Suicide Note


 

The Weibo user referred to by the Qingdao local government account had posted a lengthy letter on the night of May 14. Using an anonymous Weibo account (@用户7138253812), the author, identifying himself as a 15-year-old boy from Qingdao, came out as gay and shared his pain and grievances over the pressure he faced.

Because the boy wrote he wanted to “leave this world forever” and ended his post with a farewell, many people became worried about the boy’s mental state and whereabouts.

In the early morning of May 15, the official Weibo account of Qingdao Police (@青岛公安) posted an update, stating that the boy was found safe after running away from home.

Later that day, another post was published on the same anonymous account saying: “Thank you everyone, everything is fine.” The farewell note has since been deleted. See a full translation of the text below this article.

 

Qingdao Official Account Receives Praise


 

With its post supporting the young gay man and the LGBT community at large, the Qingdao Government official news account is receiving hundreds of comments praising them.

Besides their original post, the Qingdao government account also posted a total of nine different quotes relating to LGBT issues, including one from Taiwanese film director Ang Lee saying “There’s a Brokeback Mountain in everyone’s heart.”

Another one stresses the fact that homosexuality is not a mental illness, with yet another quote mentioning that the Netherlands became the first country in 2001 to legalize same-sex marriage.

The reposted quotes were originally published on the Weibo account of Sina Shandong (@新浪山东), the official Weibo account of Sina’s Shandong Province Branch.

As the Qingdao Weibo post is gaining more popularity on Weibo at time of writing, these are some of the popular comments below:

  • “This is so awesome for an Official Weibo account!”
  • “That an Official account would post this.. seeing this makes me tear up. I will always support equal rights.”
  •  “I’m crying, this was really sent out by an Official account.”
  • “This must be the best Official account post I’ve ever seen on Weibo.”
  • “Let’s give it up for Qingdao!”
  • “This means progress!”
  • “I’m not from Qingdao, but I will follow this account from now on. This [post] shows you have guts.”
  • “I feel proud to be from Qingdao.”
  • “I am so moved by your post. Thank you for your support. I hope your light will shine on all the people.”

Over the past few years, Chinese social media have seen many times when gay content was censored.

One important moment occurred in 2017, when the China Netcasting Services Association (CNSA, 中国网络视听节目服务协会) issued new criteria to strengthen regulations over online audio-visual content on Chinese platforms. One of the new regulations regarded the removal of online content that “displays homosexuality” (“展示同性恋等内容”), grouping homosexuality together with incest and sexual perversity as “abnormal sexual behavior.”

Although it is very noteworthy for an official government account to publish social media posts that strongly support the gay community, it is not the first time it has happened.

In July of 2017, the official account of the Communist Youth League of Fujian published a post that stated “Being gay is no disorder!” Many netizens at the time, like today, said the unexpected support moved them to tears.

Sometimes on Weibo, it’s the little posts about big matters that seem to matter the most – especially when they come from a government-run source.

 

Full Translation of Suicide Note


 

The suicide note in question has been deleted from Weibo, but The Beijing LGBT Center translated the text and posted it on its Facebook page.

Please note that the following translation is not a What’s on Weibo translation and that all credits for this translation go to the Beijing LGBT Center. Follow them on Facebook here:

I am from Qingdao and am a 15-year-old student from Laoshan No.8 Secondary School.

I am a homosexual. I never expected I would be able to utter this word.

Growing up a frail and meek boy, I am that ‘fem’ everyone is referring to. An easy target, bullied, assaulted, teased, abused, and shunned by classmates and teachers alike. This is how I grew up, and so did many other gay children. Naive as I was, I did not fight back or told anyone about my feelings. I was afraid, and am still afraid of this world. I acted strangely and they called me lunatic, but I know that was my only way to protect myself. After I tried in vain to fit in, I chose to close myself from this world, and this is how I lived my childhood.

By sheer luck, I had a short childhood. I started to realize what’s ‘strange’ with me in grade 5 or 6. I remember how I exulted when I first read about affirmative answers about gay on Zhihu (Chinese version of Quora). But I was soon overwhelmed by those derogatory, abusive, and hurtful answers. I cried the whole night and yet I put my mask back on the very next morning. What people saw as maturity in me was in fact avoidance and isolation.

Things got a little better in secondary school because I am a top student. There was less bullying but I reminded that fem guy teased and mocked at by everyone. Among the worst was my class teacher, Chen Feng. For two years he inflicted me with corporal punishments. Listening to him indoctrinating his banal views was pure suffering. I’ve got enough of his so-called masculinity values, his genders have their fixed roles, his homosexuals are modern perverts. Yet he is not alone among his peers and colleagues. I have had enough of my teachers’ cursing, smearing, ridiculing, and insulting anything related to gays. All their rubbish made me sick and isolated.

Gradually I become irritable and violent. I came out to my mother rather abruptly. Though she seemed to have acquiesced it, I was giving in to the pressure and thinking about ending everything. I have no idea what happened to me and I know choosing death is not courageous, but rather an act of cowardice. I chose to avoid my family and I knew my indifference and avoidance hurt them, especially my mom, the one person who loves me the most.

My father is a weak and arrogant scum and inflicted my mother her whole life. He broke down my door when I was most vulnerable and isolated and banged my head on the wall. At that moment, I only wished he could kill me. But he was stopped by my sister.

Just now, my so-called “family” once again stormed my room and hurled their most insulting curses at me. I realized that my mom might be the only person who can accept me in this world. Or maybe she was just pretending too.

This is not the first time I’ve thought about dying to end it all. Just a few days ago, I scaled high trying to leave all these sufferings. When I called my mom to hear her voice one last time, I hesitated, climbed down and wandered for miles away from home.

Now I have once again escaped from home with that scum’s phone in my hand. Yes, this account is my father’s. I want to tell the world what I’ve always wanted to say and to do. And then leave this world forever.

I understand living on might be the better choice. I could have a bright future and watch this world getting more open and inclusive. But I have had enough. I am sorry to have vented everything on here, and I am sorry to be so weak my entire life. I wanted to do something for this world but in reality, I can do nothing. I know, China will not have its own Stonewall; its people can put up with anything. I am losing control of emotion…

I apologize for my cowardice. To be honest, I am not innocent. But even if I had the courage to change the world, a stab in the back could have easily killed me. I have chosen to solve the radical question with the radical way.

I love you all, the kind and beautiful people of conscience, I trust you to make the world better. If there were a heaven, I will send my blessings…I wish my story will be a faint voice to your fight.”

Also read:
* Communist Youth League: “Being Gay is No Disorder!”
* Why the Gay Kisses in ‘Bohemian Rhapsody’ Won’t Make It to Chinese Cinemas
* Weibo Administration: “We’re No Longer Targeting Gay Content”
* China’s Online Gay Revolution and Rainbow Warrior Geng Le

By Wendy Huang and Manya Koetse

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.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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China Insight

Zhejiang Movie Theatre Displays Blacklisted Individuals in Avengers Movie Preview

A special ‘trailer’ before the Avengers movie premiere showed the audience blacklisted individuals.

Manya Koetse

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A local movie theatre in the city of Lishui, Zhejiang province, showed a noteworthy ‘trailer’ before the Avengers: End Game premiere on April 24.

Chinese state tabloid Global Times reports that the sold-out premiere had a ‘surprise’ moment just before the movie was about to start: a short Public Service Announcement by the Liandu district court of Lishui displayed people who are currently on a ‘debt dodging black list.’

The short film also informed the cinema audience of potential consequences of being on a blacklist, including no traveling abroad, and no traveling by air or on high-speed trains.

According to Global Times, the local district court has registered a total of 5478 people on its blacklist since 2018.

The names and faces of more than 300 people on this list have reportedly been displayed on cinema screens, public LED screens, and on buildings. Allegedly 80 of them have since complied with court orders.

As part of China’s emerging Social Credit system project, there are public court-issued lists of ‘trust-breaking enforcement subjects’ (信被执行人名单), referring to people or companies who have failed to comply with court orders.

Individuals on the judgment defaulter blacklist system run by the court system, whose information is publicized, can risk having their photos and names displayed on local LED screens on courthouses or other buildings (Dai 2018, 26).

Blacklisted individuals on a Wuxi building (via Phoenix News).

Beyond that, they will face restrictions in various ways, from being denied bank credit to being restricted from staying in high-end hotels or traveling by air.

On Weibo, the Global Times post on the noteworthy cinema preview received over 4000 shares. The same news was also reported by CCTV and Phoenix News.

Some commenters joke about the Public Service Announcement, saying: “Blacklisters [can now say]: Mum! I was on TV! On a big IMAX screen! Together with the Avengers!”

Others leave comments in support of the measure, calling it “creative,” and saying: “This is good, we should implement this all across the country.”

“Blacklisters should be displayed on all kinds of platforms.”

“This is for people to lose on their social credit,” another commenter writes: “If you don’t want to ‘socially die’ then just fulfill your duties.”

But not everyone agrees. “People are buying a movie ticket to see their film,” one person says: “They suddenly get exposed to this kind of content that has nothing to do with them, what about their rights as a consumer?”

By Manya Koetse

References

Dai, Xin, Toward a Reputation State: The Social Credit System Project of China (June 10, 2018). Available at SSRN: https://ssrn.com/abstract=3193577 or http://dx.doi.org/10.2139/ssrn.3193577 [5.3.19].

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

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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What’s on Weibo provides social, cultural & historical insights into an ever-changing China. What’s on Weibo sheds light on China’s digital media landscape and brings the story behind the hashtag. This independent news site is managed by sinologist Manya Koetse. Contact info@whatsonweibo.com. ©2014-2018

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