ICBC apparently doesn't want to help China's central bank by continuing to hold the $16b it raised in its IPO offshore. The FT:
"Industrial and Commercial Bank of China has applied to bring the $16.1bn overseas proceeds from the world’s biggest initial public offering back into mainland China.
China’s largest commercial bank said the IPO funds would be easier to use if they were converted into renminbi. However the transaction could raise difficulties for the government by increasing pressure on the currency to appreciate and adding to the more than $1,000bn in foreign currency reserves."
I don't blame ICBC. Its deposits are mostly in (appreciating) RMB. Its loans are mostly in (appreciating) RMB. Why should its capital be in (depreciating) dollars? It isn't ICBC's job to help out the PBoC ...
Or is it? I'll be interested to see if ICBC's request is granted.