Chinese police detain suspect after rumor sparks bank run

Reuters News
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Posted: Mar 26, 2014 10:15 PM

SHANGHAI (Reuters) - Police in the rural Chinese city of Yancheng have detained the person suspected of spreading a rumor that sparked a three-day bank run in the eastern Chinese town, security officials said on the city's official microblog on Thursday.

Yancheng city police detained a person surnamed Cai on Wednesday night after a rumor was started earlier this week that some banks in the area were insolvent. Depositors rushed to branches of two banks to withdraw all their savings after hearing the rumor.

The banks and Yancheng government moved to reassure depositors that their savings were safe, packing cash to the ceiling in bank branches to show depositors the banks had enough cash to fulfill all necessary withdrawals.

Chinese regulators have been moving to crack down on people spreading rumors, which they say are damaging Chinese society. Officials in Yancheng have said those responsible for spreading the rumors will be severely punished.

(Reporting by Adam Jourdan and the Shanghai newsroom; Editing by Paul Tait)