{"id":8013,"date":"2019-10-12T15:19:35","date_gmt":"2019-10-12T15:19:35","guid":{"rendered":"http:\/\/chinesemoment.com\/chinese-reading\/7-2-billion-rmb-mishap-of-everbright-securities-co-ltd\/"},"modified":"2019-10-12T15:19:35","modified_gmt":"2019-10-12T15:19:35","slug":"7-2-billion-rmb-mishap-of-everbright-securities-co-ltd","status":"publish","type":"post","link":"https:\/\/chinesemoment.com\/de\/7-2-billion-rmb-mishap-of-everbright-securities-co-ltd\/","title":{"rendered":"7.2 billion RMB mishap of Everbright Securities Co Ltd"},"content":{"rendered":"<div>A &quot;fat finger&quot; trading incident involving more than 7.2 billion yuan ($1.17 billion) at Everbright Securities Co Ltd on Aug 16, 2013 exposed regulatory flaws and weak l<em><\/em>inks in the workings of the nation&#8217;s capital markets. Regulators are still investigating the trading error.<\/p>\n<p>  Everbright Securities, one of the largest securities brokerages by assets in China and co<em><\/em>ntrolled by State-owned financial co<em><\/em>nglomerate China Everbright Group, said in a filing to the Shanghai Stock Exchange on Sunday that the error occurred within the company&#8217;s arbitrage-trading system. The original transaction volume was set at 80 million yuan, but a system error caused an unexpected increase in buying orders.<\/p>\n<p>  The debacle &quot;has exposed the lack of a comprehensive warning mechanism in the stock exchanges,&quot; said Yin Zhongli, deputy director of the Institute of Finance and Banking at the Chinese Academy of Social Sciences.<\/p>\n<p>  An effective mechanism would have sounded the warning to traders when an unusually large order was placed, he said.<\/p>\n<p>  However, the stock exchange did not respond after Everbright Securities placed 23.4 billion yuan in buying orders on Friday, which was obviously unusual, he added.<\/p>\n<p>  Ye Tan, a financial columnist ba<em><\/em>sed in Shanghai, said in her blog: &quot;It is unbelievable that such high-value trade can be co<em><\/em>nducted so smoothly after a serious mistake happened to a brokerage&#8217;s internal system. Risk co<em><\/em>ntrol within the stock exchange system is totally inadequate. I stro<em><\/em>ngly fear a more terrible mistake may happen if no measures are taken.&quot;<\/p>\n<p>  What&#8217;s more, after a senior executive at Everbright Securities openly denied there were any mishaps at lunch time, Everbright Securities went ahead selling 1.85 billion yuan in exchange-traded funds and, at the same time, sold 7,130 index futures contracts. Market sources estimated that this short-selling had grossed the company at least 100 million yuan as the index plunged after Everbright Securities eventually admitted the mistake at 2:25 pm.<\/p>\n<p>  key word<br \/>  \u5149\u5927\u8bc1\u52b5\u0261u\u0101n\u0261 d&agrave; zh&egrave;n\u0261 ju&agrave;n\uff1aEverbright Securities Co Ltd<br \/>  \u4e4c\u9f99\u6307w\u016b l&oacute;n\u0261 zh\u01d0\uff1afat finger<br \/>  \u8c03\u6574\u7684ti&aacute;o zh\u011bn\u0261 de\uff1aregulatory<br type=\"_moz\" \/><\/div>\n<div class=\"chine-tie-zi-nei-rong-zhi-hou\" id=\"chine-603978843\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1889418300638825\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1889418300638825\" \ndata-ad-slot=\"7273022922\" \ndata-ad-layout-key=\"-gw-3+1f-3d+2z\"\ndata-ad-format=\"fluid\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A &quot;fat finger&quot; trading incident involving more than 7.2 billion yuan ($1.17 billion) at Everbright Securities Co Ltd on Aug<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-8013","post","type-post","status-publish","format-standard","hentry","category-chinese-reading"],"views":132,"_links":{"self":[{"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/posts\/8013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/comments?post=8013"}],"version-history":[{"count":0,"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/posts\/8013\/revisions"}],"wp:attachment":[{"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/media?parent=8013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/categories?post=8013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chinesemoment.com\/de\/wp-json\/wp\/v2\/tags?post=8013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}