Thousands of restaurants and small shops in downtown Shenyang, the capital of Liaoning province, suspended their business in the past three days due to a rumor that the local government would crack down on counterfeit goods and businesses that didn't follow the regulations.

However, the government of Shenyang on Tuesday morning denied any special actions and asked small businesses not to believe in the rumors and to resume operations as soon as possible.

On Tuesday morning, 80 percent of shops along Daxi Road, a famous electronic products hub in downtown Shenyang, were closed.

"I would support the government's crackdown, but the alleged action has seriously affected our life. I can't even buy fruit and vegetables in market. All the shops are closed, this is driving me crazy," said local resident Wang Weijin.

Many stall owners said they did not know whether the rumor was true or not, but that they decided to close their shops to prevent any possible risks.