ONE of Shanghai's three biggest brokerages has blamed insufficient risk management and monitoring for violations of the rules of the city's treasury bond futures market, leading to a suspension of trading.
'The problem of treasury bond futures lies with the inadequacy of the risk controlling system,' said Shanghai Shenyin Securities chief executive officer Kan Zhidong.
He said the issue was a three-pronged problem.
Investors were not risk-conscious enough, while brokers did not have sufficient risk control, said Mr Kan.
'The Shanghai Stock Exchange is also exposed to high risks because it is owed a lot of money by members.' He also blamed the irregularities on brisk trading in treasury bond futures where volume far exceeded the issued amounts.
The China Securities Regulatory Commission, the mainland's securities watchdog, announced on Wednesday that it was banning treasury bond futures trading.