Market regulators need to fix loopholes: analysts
After a trading glitch sent the Shanghai Composite into a historical buying frenzy two weeks ago and sparked an investigation by China's securities regulators, analysts say the nation's regulators are at a loss on how to fix the deficiencies.
The China Securities Regulatory Commission said on Aug 18 that it was launching a probe into State-controlled Everbright Securities Co, which is suspended from trading on Aug 16 after it said an error in its trading system led to 7.2 billion yuan($1.18 billion) in unintentional stock purchases. The surge in orders pushed the benchmark Shanghai Composite Index by 5 percent in two minutes on Aug 16 before it ended 0.6 percent lower.
On Sunday, a bourse spokesman said at a news conference that they will improve its risk control measures to prevent similar incidents from happening. The CSRC, on the other hand, said it has wrapped up its investigation into Everbright and will announce its findings as soon as possible.
