Xinxiang is close to several scientific research centres and a local medical school - and locals became convinced the creature was an experiment gone wrong, on the run from a nearby lab.
One witness said: ‘The pink skin makes it look just like pig gone wrong in some sort of genetic experiment.’
But police say the dog is actually a pedigree breed called a Chinese crested hairless dog is a pet - and expensive.
‘It is definitely a dog, and quite an expensive one at that,’ said a spokesman.
The bizarre breed with just tufts of hair on its head and tail and a bare, spotted body regularly features as a contender in the World's Ugliest Dog contest.
One celebrated example, Yoda (pictured below), won the 2011 World's Ugliest Dog contest at the Sonoma Marin Fair for her short tufts of hair, protruding tongue, and long, seemingly hairless legs.
The 1.8lb pooch had lived a rough life before Terry Schumacher found her abandoned behind an apartment building and mistook her for a rat.
The dog went on to bag $1,000 and a trophy 15 times her size when she won the contest held in Petaluma, California last June.Via Daily Mail