Cash Withdrawal Declined at Guangdong Huaxing Bank

On July 14th, according to social media Huaxing Bank refused cash withdraws and 90% of the funds went into real estate and the capital flow was broken. Later, Huaxing Bank released a statement in which it claimed to have referred the case to the public security authorities. The Nanshan Branch of the Shenzhen Public Security Bureau reportedly identified the case on July 15th.

Guangdong Huaxing Bank is a mixed-ownership commercial bank that was founded in August of 2011, and has a registered capital of RMB8 billion. It was authorised by the State Council’s relevant ministries and agencies and has its registered office in the Shantou Special Economic Zone. Eleven principal branches have been created by the Bank thus far in the PRC. The Bank had assets worth more than RMB370 billion as of the end of December 2021.

Kingold Group, the majority shareholder of Guangdong Huaxing Bank, is a diversified conglomerate with a focus on the real estate industry. It was incorporated in 1995, and Chau Chak Wing is its legal representative. Its registered office is at 62 Jinsui Road in the Tianhe District of Guangzhou.

Recently, Tomorrow Group, the major shareholder of Baoshang Bank, has been operating through a shell company to extract significant amount of bank cash, resulting in the collapse of Baoshang Bank. Evergrande Group, which specialises in real estate, is one of the principal shareholders of Shengjing Bank, which is traded on the Main Board of the Hong Kong Stock Exchange. Since Evergrande is currently in ecconomic decline, depositors at Shengjing Bank are unable to withdrawl their money.