On October 31, in Nehe City, Qiqihar, Heilongjiang Province, the Xinnonghe Rural Mutual Aid Society in the New Agricultural Cooperative is suspected of a possible financial scandal. It was rumored online that “the common people have deposited millions of yuan, but now the person in charge has fled.” Chinese media reported on the incident, but the official authorities quickly sealed off information regarding the event.
A video posted by netizens showed that on that day, there were approximately hundreds of depositors gathered at the Xinnonghe Rural Mutual Aid Society and the Nehe Hotel in Nehe City demanding explanations. Security guards and plainclothes personnel were present to maintain order, and the scene became chaotic at one point with someone suddenly collapsing.
According to a report by mainland media outlet Benliu News on the morning of November 1, Mr. Li, a resident of Nehe City, Qiqihar, Heilongjiang Province, stated that on the evening of October 30, he learned from other depositors that the institution suddenly ceased operations and they could not withdraw their money. On October 31, he went to the institution to confirm, only to find the gate tightly shut. Mr. Li mentioned that on the afternoon of October 31, many depositors at the institution collectively raised concerns to the Nehe City government, but officials did not provide a clear response, only stating that time was needed for investigation.
Mr. Li revealed that most of the depositors in the institution were local elderly residents. He and two other relatives had a total of 230,000 yuan deposited in the institution.
It is claimed that the institution has been operating in the area for over a decade. Initially, staff members went to rural areas distributing flyers, promising higher interest rates, which led many local residents to deposit their money there. Although interest rates slightly decreased in recent years, the institution had always been able to honor withdrawals and deposits smoothly. The common people believed the institution was a legitimate bank, but it seems that was not the case. According to Mr. Li, there are thousands of depositors at the institution, with amounts ranging from a few thousand yuan to millions of yuan.
When reporters attempted to contact the Xinnonghe Rural Mutual Aid Society in Nehe City, both the landline and mobile phones went unanswered, and no one was available at the Nehe City Committee Publicity Department or the Nehe City Government Office. When inquired at the Qiqihar Branch of the China Banking and Insurance Regulatory Commission, staff stated they were unaware of the situation and had not received any reports.
Reports also mentioned that individuals related to the institution have been detained by local authorities.
However, the Chinese Communist Party authorities later initiated a stability maintenance operation and censored all mainland media reports on the incident. Videos on mainland social media platforms were also gradually removed.
According to Tianyancha information, the Xinnonghe Rural Mutual Aid Society in Nehe City was established in 2012 and primarily engaged in other financial activities. The registered capital of the enterprise was 5.21 million yuan, exceeding 49% of similar institutions in Heilongjiang Province. In terms of risks, the enterprise had 28 items of Tianyancha risk information and 24 items related to lawsuits.
Under the Chinese Communist regime, rural mutual aid societies or cooperative financial institutions are established with the approval of the banking regulatory authorities and are voluntarily formed by farmers, rural villagers, and small rural enterprises in the community to provide mutual financial support. They operate as independent legal entities.
In recent years, rural financial institutions in China have been plagued by corruption scandals or cases of executives fleeing with funds. One of the most well-known incidents occurred starting on April 18, 2022, involving the closure of online withdrawal and transfer channels without warning in four village and town banks in Henan Province, including Xinminsheng Village Bank in Yuzhou, Huimin Village Bank in Shangcai, Huanhuai Village Bank in Zhecheng, and New Eastern Village Bank in Kaifeng. This financial scandal affected 400,000 bank users with a total amount of around 40 billion yuan, leading to large-scale protests by depositors. Official forces cracked down heavily, resulting in bloody conflicts at the scene. Some depositors have made multiple attempts at safeguards and have been followed by unidentified individuals and surrounded by police. To this day, many depositors have yet to retrieve their savings.