China Everbright Securities shares plunge after fine

The CSRC bans four executives and orders the brokerage to cease all proprietary trading activities (excluding fixed-income business) after error in the company’s trading system.

China Everbright Securities shares plunge after fine
The CSRC criticised Everbright for risk hedging following the mistake, through a sale of Rmb1.85 billion worth of stocks as exchange-traded funds (ETF) and short-sold 7,130 futures contracts.

Shares in China Everbright Securities dropped by their 10 per cent limit on Monday after the brokerage was fined Rmb523 million $85.5 million for erroneous trades last month that caused a stock market jump.

The Shanghai-based firm on Monday said it had received the notices from the China Securities Regulatory Commission CSRC, the country’s securities watchdog, about the fine and would comply.

As well as the fine, four of Everbright Securities’...

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