Internet Rumors Spark Chinese Bank Run

A bank run was triggered by rumors that “the bank owner was arrested”. People queued up to withdraw money from Huione Pay and Panda Bank on December 31.

When the door opened at 9 o’clock in the morning, many people were already waiting to withdraw money, and by around 2 o’clock in the afternoon, more and more people were lined up.

Most were Chinese customers who have heard Internet rumors and came to withdraw money. Many of them believed that the online rumors were not credible, but were not willing to risk their savings.

In order to prevent a large amount of money from being run on, the bank temporarily stipulated that each person was limited to withdrawing 20,000 US dollars.

Outside, unofficial money changers gathered, offering to exhange RMB to USD.

Huione Group has a number of businesses, including a currency exchange, transfer and payment platform. Huione’s chairman is also chair of Panda Bank, whose directors include Hun To (also a director at Huione Pay) and Hun Kimleng.

The bank has assured customers that there is no truth to the rumors, and that the bank will continue to operate as normal.

CLARIFICATION: Sources had linked Panda Bank to another well known business group. This has now turned out to be misleading and the article has been ammended.

SOURCES- WeChat, Cambodia-China Monitor, 58CAM

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