China arrests hundreds over banking scandal

Chinese police have arrested more than 200 suspects linked to one of the country's biggest-ever banking scandals.

Four banks in central China's Henan Province suspended cash withdrawals in April as regulators cracked down on mismanagement, freezing the funds of hundreds of thousands of customers.

Police said on Monday they had now arrested 234 people in connection with the scandal and that "significant progress" was being made in recovering stolen funds.

"A criminal gang... illegally controlled four village and town banks... and was suspected of committing a series of serious crimes," police in the city of Xuchang said in a statement on Monday.

Regulators have been gradually offering repayments to depositors since mid-April.

On Monday, the Henan banking and insurance regulator promised to repay those who had deposited between 400,000 and 500,000 yuan (US$57,900 to US$72,300) starting this week.

Depositors who owed smaller amounts were repaid earlier.