China Focus: Everbright Securities punished, faster reforms urged (2)

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China Focus: Everbright Securities punished, faster reforms urged (2)

(Xinhua) 09:07, August 24, 2013

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According to a filing to the stock exchange on Thursday, the company's operating revenue during the first half of 2013 amounted to 2.4 billion yuan, up 13.24 percent year on year.

The stock price of the company has plunged more than 15 percent this week, and closed 1.4 percent lower to 9.84 yuan on Friday.

The brokerage company has also been ordered by the CSRC to suspend lead-underwriting any new debt financing instruments of non-financial enterprises in the country's inter-bank bond market.

REFORMS URGED

Hu Yuyue, an expert of securities and futures at the Beijing Technology and Business University, called for better financial supervision in the securities market.

The regulator should carry out real-time monitoring of the stock market and guard against risks brought by abnormal trading, Hu said. It is important to quickly trace the source and destination of funds.

In the wake of Everbright Securities' trading error, the CSRC is mulling response measures to prevent similar cases from happening again.

The commission has organized a symposium on "program trading" to solicit institutional investors' feedback to reduce risks, reported Friday's China Securities Journal.

Program trading is a type of trading in securities, usually consisting of a basket of stocks that are executed by a computer program simultaneously based on predetermined conditions.

Some local regulatory agencies have taken action. The CSRC's Henan bureau said Wednesday that it had launched a self-examination move. It has required local securities firms and futures companies to submit reports on their self-examinations in a month.