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Empresas y finanzas

China's Sheyang county says funds protected after rumors spark bank run


    YANCHENG (Reuters) - The governor of China's Sheyang county urged depositors not to panic and said bank deposits were protected after solvency rumors sparked a run on at least two local banks, according to a video posted on the county government's website on Wednesday.

    On Tuesday, hundreds of people rushed to withdraw money from branches of two small Chinese banks after rumors spread about solvency at one of them, reflecting growing anxiety among investors as regulators signal greater tolerance for credit defaults.

    The governor, Tian Weiyou, said the bank would ensure that there would be sufficient funds to pay every depositor. He also urged people not to spread or believe rumors.

    "Please be assured that the People's Bank of China and the rural commercial bank system will ensure the interests of all depositors will be," he said in the two-minute video statement.

    (Reporting by Adam Jourdan, Chen Yixin, Lu Jianxin; Editing by Paul Tait)