China denies central bank chief has fled after losses

Several Chinese websites reported Monday that the People's Bank of China had incurred a US$430 billion loss on bonds from U.S. mortgage giants Fannie Mae and Freddie Mac and that Beijing might punish some people including Zhou.

The websites cited the Ming Pao Daily as their source, but the Hong Kong newspaper denied any such publication. The reports fuelled rumors among Chinese Internet users that Zhou had left the country.

The central bank was at pains to prove Zhou was at work, issuing two statements Monday with photos of the PBOC governor meeting with a Japanese official and a former Italian official.

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