Trading mishap reveals flaws in securities sector
By Chen Jia | China Daily | Updated: 2013-08-19 07:55
Design flaws in China Everbright Securities' trading system triggered an unexpected huge buy, causing the Shanghai stock market to rise more than 5 percent at noon on Friday, the top securities watchdog said on Sunday.
It was the first extreme and individual case since the establishment of a capital market in China, which raised red flags for the entire securities sector, the China Securities Regulatory Commission said in a statement.
The commission said an initial investigation showed that mistakes in application commands and failures of the payment quota control system led the securities company to send a 23.4 billion yuan ($3.83 billion) order to the Shanghai Stock Exchange and close deals valued at 7.27 billion yuan on Friday.
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