SAFE says it only learned of the supposed plan through media reports, blaming them on "erroneous information sources" (错误的信息来源 cuòwù de xìnxī láiyuán) or "fake information" (假消息 jiǎ xiāoxī).
"Given possible US protectionist measures, it makes sense for China to preemptively flag that it holds some important cards, which could restrain the USA actions", Alan Ruskin, global co-head of foreign exchange research at Deutsche Bank, said in a note.
Meanwhile, traders largely shrugged off a report from the Labor Department showing another unexpected increase in first-time claims for U.S. unemployment benefits.
The Labor Department said import prices inched up by 0.1 percent in December after climbing by an upwardly revised 0.8 percent in November.
A separate report from the Labor Department unexpectedly showed a modest decrease in producer prices in the month of December. A feature in the marketplace this week is rising world government bond yields (falling prices).
Excluding food and energy prices, core producer prices still dipped by 0.1 percent in December following a 0.3 percent increase in November.
Ending the ECB's monetary stimulus would be a major development for financial markets because the program is thought to have helped drag down bond yields globally. Core prices had also been expected to tick up by 0.2%.
On the other hand, airline stocks moved substantially higher, with the NYSE Arca Airline Index climbing by 1.7 percent.
Natural gas stocks showed a significant move to the downside over the course of the trading session, dragging the NYSE Arca Natural Gas Index down by 1.4 percent. Furthermore, the 10-year yield has failed to take its high from the first quarter of 2017, and the 30-year has remained even more contained in its moves.
In the bond market, treasuries turned higher over the course of the session after seeing early weakness.
In recent trading, the yield on the benchmark 10-year Treasury note was 2.562%, according to Tradeweb, compared with 2.551% Wednesday.
"Officials may have leaked the information as a warning to the Trump administration that Beijing could retaliate" against trade pressure, according to speculation by "some fixed-income strategists", as reported by the FT.
Economic data may also attract attention, with traders likely to keep a close eye on reports on retail sales and consumer price inflation.
Illinois Girl, 11, Can Take Medical Marijuana at School, Judge Agrees
According to the lawsuit, the patch has improved her health along with drops of cannabis oil applied to her tongue or wrists. This is belived to be the first case of its kind and could set a precedent for schools across the nation.