News Headline Summary

Market talk that today's Chinese currency fix may have resulted in a large loss for Industrial and Commercial Bank of China (1398 HK) - Unconfirmed

‘Market talk’ – Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of the talk is taken at the readers own risk and is a representation of the rumours within the market place and never generated by ourselves.

Reaction details (02:14)

- At present there is no move in ICBC shares which currently trade flat on the day at HKD 5.06.

Analysis details (02:52)

- Talk suggests that the People's Bank of China intervened in the market last Friday, using ICBC to buy in the spot market to support the USD against CNY strength but given the fix today at 6.2920 it would equate to a loss of more than 100 pips on the USD.
- Analysts note other reasons for the lower fixing as continued US pressure, continued selling by corporates and interest in lifting the local currency into year end.

12 Nov 2012 - 02:03 - Equities Rumour - Source: RANsquawk

Subscribe Now to RANsquawk

Click here for a 1 week free trial

RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: