Shares in Industrial and Commercial Bank of China (ICBC) came under pressure yesterday amid rumours that billions of dollars worth of the mainland lender's shares were about to flood the market.
Six Hong Kong fund managers reported they were called by brokers claiming to have a large block of ICBC shares to sell.
Strategic investors who bought stakes in ICBC in 2005 - Goldman Sachs, American Express and German insurer Allianz - will be allowed to sell their shares from April 28.
But the three strategic investors had said previously they would not put ICBC shares on the market as this would depress the mainland lender's stock.
Instead, they said they would prefer private placements, off-market deals where they could transfer their holdings to other investors without disrupting the share price.
'Brokers called me twice after the market opened in the afternoon session and said a substantial investor in ICBC was trying to offload shares in the bank to reap at least HK$1.6 billion,' a fund manager said.