Inside China Today

Mass protest at Jishou Railway

On Thursday, nearly 10,000 protestors gathered at Shouji Station in Jishou City, Hunan Province. Masses of people stood on the tracks, blocking trains. According to local residents, the protest was due to illegal fund-raising by a number of local real estate enterprises, causing losses to a large number of investors.

Mainland Internet users posted images over the Internet at 1:00 pm on the 4th, showing that authorities had dispatched a large number of personnel wearing camouflage uniforms and armed with batons and shields who surrounded protestors on the rail tracks.

Reporters interviewed one of the protesters who confirmed that there were nearly 10 000 there and that if the police unsettled the mass it could cause serious problems.

Images of dozens of vehicles carrying armed police stationed outside Jishou City have also been released. In addition to blocking the train, there are also a number of major streets blocked by the masses in protest.

After the armed police reached protestors, people had been dispersed, and news revealed that over 10 people were arrested with casualties unknown so far. Around 6.00 pm trains resumed normal operation.

According to some of the local citizens, this large-scale mass protest stemmed from a scam that local real estate companies are doing. They use their official backgrounds to collect funds from the public by promoting schemes that show high returns, but once the money is given they do not deliver the promised earnings. This is leading to collapses of companies and losses of principle and interest to investors.

Some Internet users claim that people in Jishou invested over 100 million Yuen. Victims of the financial scheme had appealed to the courts for justice but the court would not file the case.

An insider said that many staff of the government departments and enterprises borrowed loans from banks, ranging from 60,000 yuan (around 9000 USD) to 200,000 yuan (around 29000 USD) as investment capital. They have revealed that officials have colluded with businesses, victimizing ordinary people. The businesses collect the funds and have permission to do so by the Government, as the company has an official background.

He also said that it is understood the illegal fund raising started in 2004, and one company involved is “Hunan Sanguan Realty Development Holdings Limited.