China Everbright Securities opens down 10pc after senior executives resign

PUBLISHED : Monday, 02 September, 2013, 10:14am
UPDATED : Monday, 02 September, 2013, 10:14am

Shares in China’s Everbright Securities opened down 10 per cent on Monday, the maximum permitted daily change, when trading resumed after the brokerage announced the resignation of two senior executives.

Trading in the shares was suspended on Friday pending announcements.

Assistant President Yang Chizhong and Board Secretary Mei Jian handed in letters of resignation on Saturday, the medium-sized brokerage said in a filing to the Shanghai Stock Exchange late on Sunday, after China’s stock regulator levied the heaviest penalties in the country’s stock market history after uncovering evidence of insider trading and other irregularities.

The CSRC said on Friday that it would fine Everbright Securities 523 million yuan (HK$657 million) and bar the brokerage’s former president from the industry for life.

The fines and resignations came after a glitch in the brokerage’s computer system caused an unintended placement of buy orders to the exchange on Aug. 16 and led to a massive but short-lived jump in the Shanghai Composite Index.