Everbright fiasco: Faster reforms urged
Print Edition
With Everbright Securities taking the bitter medicine from its trading error last week, investors are urging faster reforms in China’s securities sector to avoid similar incidents.
The China Securities Regulatory Commission has completed its investigation into Everbright Securities Co, which was blamed for the erroneous trading that disrupted the Shanghai stock market on August 16.
A spokesman for the CSRC said yesterday that a number of problems exist in the proprietary system of Everbright Securities and the brokerage has failed to meet risk control requirements.
The regulator has taken “administrative supervision measures” against the brokerage and suspended its proprietary business for three months until November 18.
The brokerage has also been ordered by the CSRC to suspend lead-underwriting any new debt financing instruments of non-financial enterprises in the country’s interbank bond market.
A detailed report on the investigation results and penalties will be announced later.
Hu Yuyue, an expert of securities and futures at the Beijing Technology and Business University, said the regulator should carry out real-time monitoring of the stock market and guard against risks brought by abnormal trading.
Relatedly, the CSRC said that preparations for the launch of treasury bond futures remain on track, easing fears that the Everbright case may affect the resumption of T-bond futures. The China Financial Futures Exchange last month received the go-ahead from the CSRC to resume trading of T-bond futures after an 18-year suspension.
The CSRC also said yesterday that it has given the green light for the Zhengzhou Commodity Exchange to launch the long-awaited steam coal futures.
(Shanghai Daily/Xinhua)
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