China central bank mobbed over zero-interest rumors

China Featured - July 12th, 2013

Rumors claiming the Chinese central bank was offering zero-interest loans caused a stir in the southern province of Guangxi, with hundreds of people rushing to avail the rare service.

About 1,000 people reportedly overran a branch of the People’s Bank of China in Beihai when news broke out that it was distributing interest-free loans of between 50,000 yuan ($8,200) and 500,000 yuan.

The Global Times said police were called in to disperse the crowd, which had gathered for days outside the bank.

“The People’s Bank of China is a national financial regulator and does not extend deposit or lending services to individuals,” Luo Daofang, the deputy head of the Beihai office, was quoted by local television as saying.

The Beihai city government was not available for comment while the central bank declined to comment when contacted, reports Reuters.