Chinese Police Detain Suspect After Rumor Sparks Bank Run

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

A person with the surname Cai was detained by Yancheng police Wednesday night after a rumor was started earlier this week that some banks in the area were insolvent, according to the news agency.

Depositors rushed to branches of two banks to withdraw all their savings after hearing of the rumor. The banks and the Yancheng government reassured depositors that their savings were in no danger, and even piled cash to the ceiling in bank branches to assure depositors that the banks possessed enough cash to satisfy all withdrawals.

According to Reuters, Chinese regulators have cracking down on individuals who've been spreading rumors. The regulators have said that the rumors hurt China's society. The people responsible for spreading the rumors will be severly punished, Yancheng officials said.