China Stocks Swing More Than 6% on Mistake

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Aug. 19 (Bloomberg) –- Bloomberg's Zeb Eckert reports on intraday move on the Shanghai composite caused by a trading error by Everbright, the state-controlled brokerage. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

Take a look at this chart.

This is the intraday move on the shanghai composite.

This is the biggest swing and volatility we have seen since 2009. it is because of this trading era.

There was a six percent -- 6% swing in the matter of two minutes.

53% surge in volatility.

It has been traced back to a system that china ever bright security.

The turmoil was because of sizable byuy orders.

This is according to chinese regulators.

They detected order generation and execution in the trading system under its strategic investment department.

Everybody said this yesterday.

It has also detailed a financial loss which we will get to in just a moment.

It is wildly volatile.

I remember recovering the markets.

We saw this huge pop in china stocks.

We are trying to figure out what is going on here.

It is a matter of minutes.

Some have said the market was going nuts.

Someone was going in to manipulate the markets.

They have been under investigation for some of the moves in the ipo.

What happens to them?

They are under more investigations.

The regulatory commission and the shanghai commission have both seen probes into this.

Ever bright has been conducting their own internal investigation.

Shares have been suspended.

Over the weekend it reported a mark to market loss of ready $1.7 million judging by friday's closing prices.

Ever bright is already in focus because of their connection to an ipo.

Regulators are looking at one that went in their view . it is a blow to the state- controlled brokerage.

They they have not had a good run.

Hopefully to a bit more calm herer sea.

This is the first time it has happened in china and quite a while.

Nothing new for investors but it is reminiscent of what happened in india with the nikkei futures.

The flash crass of 2000. this is something that is not used in the market.

It is not new.

The regulators are looking into it.

Thank you so much.

We will see how shanghai and hopefully csi recovers after this.

Let's talk about some more scandal in china.

This text has been automatically generated. It may not be 100% accurate.


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