Financial Fears Trigger Bank Run in China As Officials Try To Prevent Contagion

A bank run is unfolding at the Bank of Cangzhou in China due to fears of its exposure to the bankrupt property developer, Evergrande. While the bank assures its exposure is manageable and has taken legal actions to recover its loans, public panic persists. In response, Chinese authorities have arrested individuals spreading alleged rumors and are implementing measures to prevent further financial contagion. These include capital replenishment at banks, aiding in bad asset disposal, and regional operation restrictions.