Home > News > World
Thursday March 27, 2014 MYT 1:21:22 PM
Thursday March 27, 2014 MYT 1:22:55 PM
by adam jourdan
SHANGHAI (Reuters) - Police in the rural Chinese city of Yancheng have detained a person suspected of spreading rumours that sparked a three-day bank run, security officials said on the city police force's official microblog on Thursday.
Government, bank officials and residents all referred to a rumour that a local bank branch had turned down a client's request to withdraw 200,000 yuan ($32,200), which sparked the speculation the bank was insolvent. This prompted a rush among depositors to withdraw cash.
"After a police investigation, a person surnamed Cai who spread the rumours has been tracked down, and during the night on March 26 was detained by authorities. The police are now investigating the matter further," Yancheng police said in a statement posted on China's Twitter-like Sina Weibo.
Though the bank incident is isolated and is not expected to impact the economy, authorities have been trying to crack down on the spreading of rumours, which are seen as a potential threat to the stability obsessed leadership under President Xi Jinping.
The panic that hit the corner of eastern Jiangsu province near Shanghai struck a raw nerve and won national airplay, a possible reflection of public anxiety in China over the financial system after the country's first domestic bond default this month shattered assumptions the government would always step in to prevent institutions from collapsing.
The police statement urged people not to start or spread rumours and said those who did would be pursued under the law by authorities.
Jiangsu Sheyang Rural Commercial Bank and the Rural Commercial Bank of Huanghai - the two small lenders affected by the bank rush - declined to comment and Reuters was unable to verify the rumour.
Local police would not comment further on the case to Reuters.
(Additional reporting by Shanghai newsroom; Editing by Neil Fullick)
Uganda seizes explosives, suicide vests from suspected al Shabaab cell
U.S. teen faces new questioning in grisly Bali suitcase murder
Russian central bank sees 'prolonged' impact from Western sanctions
Special Report - China turns up heat on ex-security chief with crash probe
Albania looks abroad for central bankers after theft
Kerry says some nations offer ground troops to fight Islamic State
Libyan PM accuses Qatar of sending planes with weapons to Tripoli
Al Qaeda denies decline, acknowledges 'mistakes' by its branches
At a landmark Berlin rally, Merkel vows to fight anti-Semitism
Post-war counselling awaits Gaza children going back to school
North Korea sentences US citizen Matthew Miller to six years hard labour
Champions League now a scary prospect for Monaco
Larger Apple iPhones shipments delayed amid record orders
Star Wars arrives at Disney parks
Copyright © 1995-2014 Star Publications (M) Bhd (Co No 10894-D)