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China and Covid19

The Curious Case of the Henan Bank Depositors and the Changing Health QR Codes

“It must be American hackers who did this, right?”, some Weibo commenters wrote in light of the miraculously changing Health Codes.

Manya Koetse

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Where can people turn to once their money seems to have gone up in flames? How could Health Codes randomly turn from green to red? And who will stand up for justice? These are the questions asked by Chinese netizens in the Henan bank depositors case that is making headlines this week.

This week, the story of a Henan banking scandal and depositors’ Health Codes suddenly turning red triggered online discussions in China and even made international headlines.

In between online deposit products, financial platforms, regional banks, and Health Code systems, the story is a bit messy. Here, we’ll explain the story and its latest developments.

 

DUPED DEPOSITORS

 

The story starts in April of this year when people discovered that they were unable to withdraw money they had invested in online deposit products offered by various smaller regional banks.

Some people had deposited money via the Baidu money app (Du Xiaoman Financial 度小满), others had used another third-party platform, intermediaries, or one of the mini-programs run by the banks themselves.

By early May, it had become clear that dozens of depositors who once thought they had invested their money wisely had actually been duped. Four of the banks involved are located in Henan province, namely: the Yuzhou Xinminsheng Village Bank (禹州新民生村镇银行), Shangcai Huimin County Bank (上蔡惠民村镇银行), Zhecheng Huanghuai Community Bank (柘城黄淮村镇银行), and the Kaifeng New Oriental Country Bank (开封新东方村镇银行).

But there are also other smaller banks involved, including Guzhen Xinhuaihe Rural Bank (固镇新淮河村镇银行) and Yixian Xinhuaihe Rural Bank (黟县新淮河村镇银行) in Anhui.

As reported by South China Morning Post by late May, multiple customers had confirmed that they had not been able to withdraw funds either online or in person.

The sudden apparent closure of their withdrawal channels set off a wave of panic among depositors, who then protested in the provincial capital of Zhengzhou on May 23rd, demanding the return of their money.

Yang Huajun (杨华军), deputy director of the Henan branch of China’s Banking and Insurance Regulatory Commission (CBIRC), arrived at the scene of the protests and – speaking through a megaphone – promised the demonstrators that as long as their funds were “legally” deposited, they would be protected by law.

Many depositers, however, were unsure of whether or not their deposits were actually made in a “legal” way and what the definition of “legal” entailed in this case.

Over the past years, Chinese smaller rural banks have partnered with online platforms, often offering relatively high returns, in order to boost their deposit-reliant funding base.

In December of 2020, platforms Alipay, Du Xiaoman Financial, JD.com and Tencent Wealth Management all suspended the sale of online deposit products via their financial apps in light of heightened scrutiny from regulators concerning funds raised by unstable smaller lenders.

The smaller banks that are now at the center of the recent financial scandal then (illegally) reached out to their existing customers directly after December 2020 and convinced them to download the banks’ apps in order to deposit even more money.

One of the persons duped is Mr. Sun from Shenzhen. As reported by Sina Finance, it was in 2020 when Sun came across a seemingly attractive online saving product via the Du Xiaoman Financial app. Although Sun was not familiar with the banks in question, namely the Yuzhou Xinminsheng Village Bank and Shangcai Huimin County Bank, he could not resist the deposit interest rate of 4.6%, which was much better than what the big banks were offering at the time.

In early 2021, Mr. Sun received a text message from Yuzhou Xinminsheng Village Bank saying that although the financial products had been taken offline, users would still be able to deposit through the bank’s own online application. Mr. Sun ended up depositing his entire savings into the Henan-based rural bank, thousands of miles away from his own home.

And then, earlier this year, Sun came across the news that Henan New Wealth Group, the primary shareholder of all banks involved, was under investigation for fraudulous practices. When he opened up his online financial application, there was nothing to see but a notice that the system was under maintenance. Sun could no longer access his funds. Hundreds of other customers were seeing the same empty screens.

According to media reports, the current suspected scam case affects some 400,000 customers of seven local banks and involves a money sum of 40 billion yuan ($5,6 billion).

 

IN THE RED

 

As thousands of depositors have been fighting to recover their savings over the past two months, they were duped a second time earlier this week. Dozens of affected depositors claimed they had seen their Health Codes turn red without any logical reason on June 13 or June 14 – the day of a planned protest.

In China’s Covid era, the Health Code system has become a pivotal tool in the country’s battle to contain the spread of the virus. The Health Code system is embedded in various apps, most importantly in Wechat and Alipay, and uses various data to assess an individual’s exposure risk. There is not one unified national Health Code application; they are developed by different actors and their management is different across Chinese provinces and cities.

If there is no detected risk, an individual is assigned a Green QR Code and is allowed access into any venue or location where a QR code scan is mandatory. With a Yellow Code, you should stay home for a week, and Red Code means you are high risk and need to quarantine for 14 days – this severely limits your freedom to move around and travel.

On June 13th, many affected investors saw their Health Code turn red when arriving in Zhengzhou, where they were allegedly coming to retrieve their savings and protest the injustice they suffered. The QR code color change was unexpected and strange, considering that there were no new reported Covid cases in their vicinity and also considering the fact that accompanying family members who made the exact same journey did not see their Health Codes change.

This raised suspicions that the duped depositors were specifically targeted, and that their Health Codes were being manipulated by authorities.

CNN reported that many distributors who had come to Zhengzhou were taken to a guarded quarantine hotel before being sent back to their hometowns via train the next day. According to a Chinese media report by Nanfang Daily, the depositors were not even asked to do nucleic acid testing and were told by local staff that they would get their Green Code back as soon as they left Henan.

Various media report that minimally 200 depositors saw their Health Code change from Green to Red earlier this week.

 

“OPERATION CODE RED”

 

The curious case of the Henan depositors scandal and the changing Health Code colors has become a trending topic on Chinese social media this week.

The topic of the duped depositors was also discussed online before this week, and it brought back memories of earlier financial scandals, such as the P2P chaos that occurred back in 2018.

But the topic of depositors’ Health Codes changing to Red is something that attracted much wider discussions on the apparent abuse of a system that has now become a part of everyday life for people in China’s Covid era.

The main proof for people that the Henan depositors were targeted in this apparent “Operation Code Red” is that, as mentioned before, the family members that were traveling together with the duped depositors never saw a change in their Health Code: those people who were listed on the affected regional banks’ depositors list were seemingly singled out and purposely targeted.

“Who is in charge of changing the Health Code colors?” became a much-asked question on Weibo, with many blaming local Henan authorities for abusing their powers to try and stop protesters from raising their voices in Zhengzhou. One Weibo post on this issue received over 1,6 million views. Meanwhile, Henan authorities still said they did “not understand” what had happened.

“It must be American hackers who did this, right?”, some Weibo commenters wrote, putting in a sarcastically smiling emoji, with others adding: “No, the aliens did this – it must have been the aliens!”

Others wrote that the situation at hand should be simple to figure out: “There is no way that this is an oversight or a data error. If you want to know who did this, look at who or which department has the authority to manage both epidemic prevention measures as well as finance affairs.”

Many comments also showed a sense of disillusionment with how China’s Covid management affects the people: “After seeing the chaos during the Shanghai lockdown, this does not even surprise me anymore,” one person wrote on Weibo: “All we can do is pray that it won’t happen to us.”

“Why is Henan’s “messy Red Code” incident so extremely vile and scary? Because once a person or institution holding public power looks at you in a bad light, they can give you a Red Code and take you away, in the name of legality. This is the evil that comes from unmonitored power,” one blogger from Anhui wrote.

Other people also worried about foreign media reporting on this issue, saying this incident is being used to cast China in a bad light while local authorities are to blame: “We should unify the Health Code system into a national system in order to avoid this from happening again.”

According to Chinese state media reports, the case has now been forwarded to the Health Commission of Henan Province for further investigation.

We will keep tracking upcoming developments. Meanwhile, check out our other reports on trending topics relating to China’s banking and finance here. For more about Covid-related trending topics, check here.

By Manya Koetse
With contributions by Miranda Barnes

Image via Weibo

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References (all other sources included in hyperlinks)

Lee, Amanda. 2022. “Rural Banks Freeze Customers’ Accounts.” South China Morning Post, May 31.

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.

©2022 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya Koetse is the founder and editor-in-chief of whatsonweibo.com. She is a writer, public speaker, and researcher (Sinologist, MPhil) on social trends, digital developments, and new media in an ever-changing China, with a focus on Chinese society, pop culture, and gender issues. She shares her love for hotpot on hotpotambassador.com. Contact at manya@whatsonweibo.com, or follow on Twitter.

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China and Covid19

Sick Kids, Worried Parents, Overcrowded Hospitals: China’s Peak Flu Season on the Way

“Besides Mycoplasma infections, cases include influenza, Covid-19, Norovirus, and Adenovirus. Heading straight to the hospital could mean entering a cesspool of viruses.”

Manya Koetse

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In the early morning of November 21, parents are already queuing up at Xi’an Children’s Hospital with their sons and daughters. It’s not even the line for a doctor’s appointment, but rather for the removal of IV needles.

The scene was captured in a recent video, only one among many videos and images that have been making their rounds on Chinese social media these days (#凌晨的儿童医院拔针也要排队#).

One photo shows a bulletin board at a local hospital warning parents that over 700 patients are waiting in line, estimating a waiting time of more than 13 hours to see a doctor.

Another image shows children doing their homework while hooked up on an IV.

Recent discussions on Chinese social media platforms have highlighted a notable surge in flu cases. The ongoing flu season is particularly impacting children, with multiple viruses concurrently circulating and contributing to a high incidence of respiratory infections.

Among the prevalent respiratory infections affecting children are Mycoplasma pneumoniae infections, influenza, and Adenovirus infection.

The spike in flu cases has resulted in overcrowded children’s hospitals in Beijing and other Chinese cities. Parents sometimes have to wait in line for hours to get an appointment or pick up medication.

According to one reporter at Haibao News (海报新闻), there were so many patients at the Children’s Hospital of Capital Institute of Pediatrics (首都儿科研究所) on November 21st that the outpatient desk stopped accepting new patients by the afternoon. Meanwhile, 628 people were waiting in line to see a doctor at the emergency department.

Reflecting on the past few years, the current flu season marks China’s first ‘normal’ flu peak season since the outbreak of Covid-19 in late 2019 / early 2020 and the end of its stringent zero-Covid policies in December 2022. Compared to many other countries, wearing masks was also commonplace for much longer following the relaxation of Covid policies.

Hu Xijin, the well-known political commentator, noted on Weibo that this year’s flu season seems to be far worse than that of the years before. He also shared that his own granddaughter was suffering from a 40 degrees fever.

“We’re all running a fever in our home. But I didn’t dare to go to the hospital today, although I want my child to go to the hospital tomorrow. I heard waiting times are up to five hours now,” one Weibo user wrote.

“Half of the kids in my child’s class are sick now. The hospital is overflowing with people,” another person commented.

One mother described how her 7-year-old child had been running a fever for eight days already. Seeking medical attention on the first day, the initial diagnosis was a cold. As the fever persisted, daily visits to the hospital ensued, involving multiple hours for IV fluid administration.

While this account stems from a single Weibo post within a fever-advice community, it highlights a broader trend: many parents swiftly resort to hospital visits at the first signs of flu or fever. Several factors contribute to this, including a lack of General Practitioners in China, making hospitals the primary choice for medical consultations also in non-urgent cases.

There is also a strong belief in the efficacy of IV infusion therapy, whether fluid-based or containing medication, as the quickest path to recovery. Multiple factors contribute to the widespread and sometimes irrational use of IV infusions in China. Some clinics are profit-driven and see IV infusions as a way to make more money. Widespread expectations among Chinese patients that IV infusions will make them feel better also play a role, along with some physicians’ lacking knowledge of IV therapy or their uncertainty to distinguish bacterial from viral infections (read more here)

To prevent an overwhelming influx of patients to hospitals, Chinese state media, citing specialists, advise parents to seek medical attention at the hospital only for sick infants under three months old displaying clear signs of fever (with or without cough). For older children, it is recommended to consult a doctor if a high fever persists for 3 to 5 days or if there is a deterioration in respiratory symptoms. Children dealing with fever and (mild) respiratory symptoms can otherwise recover at home.

One Weibo blogger (@奶霸知道) warned parents that taking their child straight to the hospital on the first day of them getting sick could actually be a bad idea. They write:

“(..) pediatric departments are already packed with patients, and it’s not just Mycoplasma infections anymore. Cases include influenza, Covid-19, Norovirus, and Adenovirus. And then, of course, those with bad luck are cross-infected with multiple viruses at the same time, leading to endless cycles. Therefore, if your child experiences mild coughing or a slight fever, consider observing at home first. Heading straight to the hospital could mean entering a cesspool of viruses.”

The hashtag for “fever” saw over 350 million clicks on Weibo within one day on November 22.

Meanwhile, there are also other ongoing discussions on Weibo surrounding the current flu season. One topic revolves around whether children should continue doing their homework while receiving IV fluids in the hospital. Some hospitals have designated special desks and study areas for children.

Although some commenters commend the hospitals for being so considerate, others also remind the parents not to pressure their kids too much and to let them rest when they are not feeling well.

By Manya Koetse, with contributions from Miranda Barnes

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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.

©2023 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China and Covid19

Repurposing China’s Abandoned Nucleic Acid Booths: 10 Innovative Transformations

Abandoned nucleic acid booths are getting a second life through these new initiatives.

Manya Koetse

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During the pandemic, nucleic acid testing booths in Chinese cities were primarily focused on maintaining physical distance. Now, empty booths are being repurposed to bring people together, serving as new spaces to serve the community and promote social engagement.

Just months ago, nucleic acid testing booths were the most lively spots of some Chinese cities. During the 2022 Shanghai summer, for example, there were massive queues in front of the city’s nucleic acid booths, as people needed a negative PCR test no older than 72 hours for accessing public transport, going to work, or visiting markets and malls.

The word ‘hésuān tíng‘ (核酸亭), nucleic acid booth (also:核酸采样小屋), became a part of China’s pandemic lexicon, just like hésuān dìtú (核酸地图), the nucleic acid test map lauched in May 2022 that would show where you can get a nucleic test.

Example of nucleic acid test map.

During Halloween parties in Shanghai in 2022, some people even came dressed up as nucleic test booths – although local authorities could not appreciate the creative costume.

Halloween 2022: dressed up as nucliec acid booths. Via @manyapan twitter.

In December 2022, along with the announced changed rules in China’s ‘zero Covid’ approach, nucleic acid booths were suddenly left dismantled and empty.

With many cities spending millions to set up these booths in central locations, the question soon arose: what should they do with the abandoned booths?

This question also relates to who actually owns them, since the ownership is mixed. Some booths were purchased by authorities, others were bought by companies, and there are also local communities owning their own testing booths. Depending on the contracts and legal implications, not all booths are able to get a new function or be removed yet (Worker’s Daily).

In Tianjin, a total of 266 nucleic acid booths located in Jinghai District were listed for public acquisition earlier this month, and they were acquired for 4.78 million yuan (US$683.300) by a local food and beverage company which will transform the booths into convenience service points, selling snacks or providing other services.

Tianjin is not the only city where old nucleic acid testing booths are being repurposed. While some booths have been discarded, some companies and/or local governments – in cooperation with local communities – have demonstrated creativity by transforming the booths into new landmarks. Since the start of 2023, different cities and districts across China have already begun to repurpose testing booths. Here, we will explore ten different way in which China’s abandoned nucleic test booths get a second chance at a meaningful existence.

 

1: Pharmacy/Medical Booths

Via ‘copyquan’ republished on Sohu.

Blogger ‘copyquan’ recently explored various ways in which abandoned PCR testing points are being repurposed.

One way in which they are used is as small pharmacies or as medical service points for local residents (居民医疗点). Alleviating the strain on hospitals and pharmacies, this was one of the earliest ways in which the booths were repurposed back in December of 2022 and January of 2023.

Chongqing, Tianjin, and Suzhou were among earlier cities where some testing booths were transformed into convenient medical facilities.

 

2: Market Stalls

Market stalls instead of nucliec acid testing booths. Image via Sina.

In Suzhou, Jiangsu province, the local government transformed vacant nucleic acid booths into market stalls for the Spring Festival in January 2022, offering them free of charge to businesses to sell local products, snacks, and traditional New Year goods.

The idea was not just meant as a way for small businesses to conveniently sell to local residents, it was also meant as a way to attract more shoppers and promote other businesses in the neighborhood.

 

3: Community Service Center

Small grid community center in Shizhuang Village, image via Sohu.

Some residential areas have transformed their local nucleic acid testing booths into community service centers, offering all kinds of convenient services to neighborhood residents.

These little station are called wǎnggé yìzhàn (网格驿站) or “grid service stations,” and they can serve as small community centers where residents can get various kinds of care and support.

 

4: “Refuel” Stations

In February of this year, 100 idle nucleic acid sampling booths were transformed into so-called “Rider Refuel Stations” (骑士加油站) in Zhejiang’s Pinghu. Although it initially sounds like a place where delivery riders can fill up their fuel tanks, it is actually meant as a place where they themselves can recharge.

Delivery riders and other outdoor workers can come to the ‘refuel’ station to drink some water or tea, warm their hands, warm up some food and take a quick nap.

 

5: Free Libraries

image via sohu.

In various Chinese cities, abandoned nucleic acid booths have been transformed into little free libraries where people can grab some books to read, donate or return other books, and sit down for some reading.

Changzhou is one of the places where you’ll find such “drifting bookstores” (漂流书屋) (see video), but similar initiatives have also been launched in other places, including Suzhou.

 

6: Study Space

Photos via Copyquan’s article on Sohu.

Another innovative way in which old testing points are being repurposed is by turning them into places where students can sit together to study. The so-called “Let’s Study Space” (一间习吧), fully airconditioned, are opened from 8 in the morning until 22:00 at night.

Students – or any citizens who would like a nice place to study – can make online reservations with their ID cards and scan a QR code to enter the study rooms.

There are currently ten study booths in Anji, and the popular project is an initiative by the Anji County Library in Zhejiang (see video).

 

7: Beer Kiosk

Hoegaarden beer shop, image via Creative Adquan.

Changing an old nucleic acid testing booth into a beer bar is a marketing initiative by the Shanghai McCann ad agency for the Belgium beer brand Hoegaarden.

The idea behind the bar is to celebrate a new spring after the pandemic. The ad agency has revamped a total of six formr nucleic acid booths into small Hoegaarden ‘beer gardens.’

 

8: Police Box

In Taizhou City, Jiangsu Province, authorities have repurposed old testing booths and transformed them into ‘police boxes’ (警务岗亭) to enhance security and improve the visibility of city police among the public.

Currently, a total of eight vacant nucleic acid booths have been renovated into modern police stations, serving as key points for police presence and interaction with the community.

 

9: Lottery Ticket Booths

Image via The Paper

Some nucleic acid booths have now been turned into small shops selling lottery tickets for the China Welfare Lottery. One such place turning the kiosks into lottery shops is Songjiang in Shanghai.

Using the booths like this is a win-win situation: they are placed in central locations so it is more convenient for locals to get their lottery tickets, and on the other hand, the sales also help the community, as the profits are used for welfare projects, including care for the elderly.

 

10: Mini Fire Stations

Micro fire stations, images via ZjNews.

Some communities decided that it would be useful to repurpose the testing points and turn them into mini fire kiosks, just allowing enough space for the necessary equipment to quickly respond to fire emergencies.

Want to read more about the end of ‘zero Covid’ in China? Check our other articles here.

By Manya Koetse,

Get the story behind the hashtag. Subscribe to What’s on Weibo here to receive our newsletter and get access to our latest articles:

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.

©2023 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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