CSRC identified Everbright Securities’ 8.16 incident as insider trading, offering a fine of more than 500 million yuan

By | August 30, 2013

guangda security

Stock performance of Everbright Securities

CHINA SECURITIES REGULATORY COMMISSION (CSRC) spokesman said today, the Commission has issued a fine to Everbright Securities in respect of the abnormal trading behavior on 16th August, the company faces charges including insider trading, offering misleading information, illegal internal regulations and other charges. At the same time, the secretaries Everbright provided misleading information to the public. The four main responsible persons will be permanent ban of entry into the stock market. The Everbright Securities will be fined for more than 500 million yuan (US$ 81.7 million).

However, CSRC noted that the Everbright Securities’ actions did not constitute market manipulation despite the huge market volatility triggered by the Everbright Securities’ transactions. It is believed that the incident started from the system technical shortcoming, and the survey cannot prove that the company or related personnel organization planned or promote the event. Also according to the “Securities Law”, “Exchange Management Regulations” and the China Securities Regulatory Commission Enforcement Pactice, sudden accidents like the 8.16 event leading to abnormal fluctuations of underlying securities, futures prices and trading volume shall not constitute market manipulation.

Source: Tencent Finance

Leave a Reply