{"id":20837,"date":"2020-02-07T14:18:19","date_gmt":"2020-02-07T14:18:19","guid":{"rendered":"http:\/\/chinesemoment.com\/chinese-culture\/7-2-billion-rmb-mishap-of-everbright-securities-co-ltd-2\/"},"modified":"2020-02-07T14:18:19","modified_gmt":"2020-02-07T14:18:19","slug":"7-2-billion-rmb-mishap-of-everbright-securities-co-ltd-2","status":"publish","type":"post","link":"https:\/\/chinesemoment.com\/fr\/7-2-billion-rmb-mishap-of-everbright-securities-co-ltd-2\/","title":{"rendered":"7.2 billion RMB mishap of Everbright Securities Co Ltd"},"content":{"rendered":"<\/p>\n<p>  \tA &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 links in the workings of the nation&#39;s capital markets. Regulators are still investigating the trading error.<\/p>\n<p>  \tEverbright Securities, one of the largest securities brokerages by assets in China and controlled by State-owned financial conglomerate China Everbright Group, said in a filing to the Shanghai Stock Exchange on Sunday that the error occurred within the company&#39;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>  \tThe 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>  \tAn effective mechanism would have sounded the warning to traders when an unusually large order was placed, he said.<\/p>\n<p>  \tHowever, 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>  \tYe Tan, a financial columnist based in Shanghai, said in her blog: &quot;It is unbelievable that such high-value trade can be conducted so smoothly after a serious mistake happened to a brokerage&#39;s internal system. Risk control within the stock exchange system is totally inadequate. I strongly fear a more terrible mistake may happen if no measures are taken.&quot;<\/p>\n<p>  \tWhat&#39;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>  \t<strong>key word<\/strong><br \/>  \t\u5149\u5927\u8bc1\u52b5<script language=\"Javascript\">GetWord(\"\u5149\u5927\u8bc1\u52b5\");<\/script>\u0261u\u0101n\u0261 d&agrave; zh&egrave;n\u0261 ju&agrave;n\uff1aEverbright Securities Co Ltd<br \/>  \t\u4e4c\u9f99\u6307<script language=\"Javascript\">GetWord(\"\u4e4c\u9f99\u6307\");<\/script>w\u016b l&oacute;n\u0261 zh\u01d0\uff1afat finger<br \/>  \t\u8c03\u6574\u7684<script language=\"Javascript\">GetWord(\"\u8c03\u6574\u7684\");<\/script>ti&aacute;o zh\u011bn\u0261 de\uff1aregulatory<\/p>\n<div class=\"chine-tie-zi-nei-rong-zhi-hou\" id=\"chine-3701530314\"><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 16, 2013 exposed regulatory flaws and weak links in the workings of the nation&#39;s capital markets. Regulators are still investigating the trading error.<\/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":[9,2878],"tags":[],"class_list":["post-20837","post","type-post","status-publish","format-standard","hentry","category-chinese-culture","category-city-guide"],"views":131,"_links":{"self":[{"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/posts\/20837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/comments?post=20837"}],"version-history":[{"count":0,"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/posts\/20837\/revisions"}],"wp:attachment":[{"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/media?parent=20837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/categories?post=20837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chinesemoment.com\/fr\/wp-json\/wp\/v2\/tags?post=20837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}