12 Jul 2013

People's Bank branch mobbed after rumour of free loans

7:17 am on 12 July 2013

A branch of the People's Bank of China was reportedly over-run on Tuesday after a rumour spread that it was giving zero-interest loans.

The Global Times said police were called to disperse the crowd, which had gathered for days outside the branch of the central bank in Beihai in the southern province of Guangxi.

A rumour had spread that the branch was distributing interest-free loans of between 50,000 yuan ($US8200) and 500,000 yuan.

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

Beihai city government was not available for comment and the bank declined to comment.