A ransomware attack targeting the US unit of the Industrial and Commercial Bank of China (ICBC) caused disruptions to its systems and potentially impacted liquidity in US Treasuries. The attack occurred on Wednesday and has been reported to law enforcement. ICBC Financial Services, headquartered in New York, stated that it was conducting an investigation and working towards recovering from the cyberattack. The incident did not affect the head office in Beijing, nor other domestic and overseas units. ICBC is China’s largest state-owned bank and the world’s largest lender by assets. Chinese authorities have completed emergency handling and supervision to minimize risks and losses. Global financial regulators are closely assessing the situation.
The US Securities and Exchange Commission and the UK Financial Conduct Authority are monitoring the incident and its potential impact on financial markets. Market participants reported disruptions in trades going through ICBC, potentially affecting market liquidity. It is uncertain whether the incident contributed to the weak 30-year bond auction conducted by the US Treasury on Thursday. Following the auction, there was a sharp selloff in Treasuries, impacting US stocks.
Analysts suggest that the ransomware attack may have played a role in the weak showing of the auction. China is a significant player in the Treasuries market as the second-largest foreign holder of US Treasury bills. Ransomware attacks have become a global concern and a priority for the Biden administration due to their impact on national and economic security.
