Uninformed Chinese seeking WMPs besiege PBOC branch

Central bank shocked by mob at Beihai branch.

Some 1,000 persons descended on the branch of the People’s Bank of China as a rumor spread it was handing out zero-interest loans on wealth management products of WMPs.

Local police were called in to disperse the crowd, which had gathered for days outside the PBOC branch in Beihai in Guangxi because of a rumor that PBOC was distributing interest free loans of between RMB50,000 and RMB500,000.

PBOC Beihai later issued a statement saying it is a national financial regulator and does not extend deposit or lending services to individuals.

Growth in China's wealth management industry has surged in the last three years as savers search for alternatives outside low-yielding bank deposits. Sales rose by US$1.97 trillion in the first six months of 2012.