Bankruptcy rumors cause run on bank

Chinese depositors overcrowd a branch of Jiangsu Sheyang Rural Commercial Bank to withdraw their money in Yancheng city, east Chinas Jiangsu province, March 24, 2014. [Photo/icpress]

People in Yancheng, Jiangsu province, formed a long line in the rain to withdraw money from a bank after rumors it would be closed down, Modern Express reported on Wednesday.

Almost 1,000 residents of the city swarmed the Rural Commercial Bank in Sheyang, a county of the city, on Tuesday after rumors spread of its bankruptcy, said the report, adding the bank had to transfer almost 100 million yuan ($16.12 million) to ensure customers could get their money.

"I don't know what happened. I just heard the bank might be bankrupt. I decided to withdraw 20,000 yuan," the paper quoted a woman in the line as saying, adding she waited about an hour to get her money.

The rumor came after a customer was unable to withdraw 200,000 yuan from the bank without an appointment on Monday, the report said, adding local police have started an investigation.