Everbright Securities hit by another trading blunder in Shanghai
As regulator probes glitch that sparked Friday buying frenzy in Shanghai, trader mistakenly sells 10m yuan worth of bonds too cheaply
China Everbright Securities, already in hot water over an erroneous trade that caused the key mainland stock index to jump nearly 6 per cent on Friday, reported another glitch in bond trading yesterday.
A trader mistakenly sold 10 million yuan worth of government bonds at a price much lower than the market average, resulting in a loss of around 120,000 yuan (HK$150,000).
The "fat finger" trade on the interbank market added to Everbright's woes. Last week's trading error had already prompted the China Securities Regulatory Commission (CSRC) to start an investigation after millions of furious mainland equity investors had their fingers burned in the mini-rally.
"We will take a series of measures to deal with the problems," Everbright board secretary Mei Jian said yesterday. "They have reminded us of the need to strengthen the management."
We will take a series of measures to deal with the problems
On Friday, a "technical glitch" in Everbright Securities' "arbitrage system" led to billions of yuan of buy orders of some shares at hefty prices, sending 16 heavyweight stocks soaring to their 10 per cent daily upper limit.