CSRC faces lawsuit to revoke penalty
Print Edition
The former head of a trading unit at Everbright Securities has filed a lawsuit against China’s securities regulator over a punishment he received for insider trading following a trading error that caused wild fluctuations in the Shanghai stock market last year.
Yang Jianbo, who was in charge of Everbright’s strategic investment department, was fined 600,000 yuan (US$98,897) and banned from the securities industry for life after being charged with insider trading by the China Securities Regulatory Commission.
In an interview with Capital Week, Yang denied the insider trading charge because he had informed officials of the Shanghai Stock Exchange and the Shanghai bureau of the CSRC that he would make hedge trades.
Yang lodged the lawsuit at Beijing No. 1 Intermediate People’s Court on February 8 to ask that the punishment by the CSRC be revoked.
The court hasn’t decided whether to accept the lawsuit.
A design flaw in Everbright’s system for proprietary trading triggered a deluge of orders that caused wild movements in the Shanghai stock market on August 16, with the composite index surging 5.9 percent in two minutes.
Everbright then sold shares through exchange-traded funds and opened short positions in the stock-index futures market to hedge against the massive erroneous orders.
Yang and three former executives of Everbright were accused of insider trading as they were alleged to have made the hedge trades before disclosing the trading error publicly.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
