PBOC denies bailout talks with property developer

The People's Bank of China (PBOC), the country's central bank, has denied holding bailout talks with a small property developer, said the bank on Tuesday.

Contrary to a news report, the bank neither attended "emergency talks" with Zhejiang Xingrun Real Estate Co. nor was it involved in the disposal of the company, according to the PBOC's Sina Weibo account, a Twitter-like service.

The bank said the report was not factual.

The developer, which was located in southeast China's Zhejiang Province and was reportedly burdened with heavy debts, was unable to pay 3.5 billion yuan (570.96 million U.S. dollars), including 2.4 billion yuan of loans from 19 commercial banks. Bank of Communication was said to be its largest lender.

Chinese investors feared the case was the second corporate default in the country. Shanghai Chaori Solar Energy Science & Technology Co. admitted earlier this month that it could not service a second interest payment of a 1-billion-yuan bond due on March 7.