Everbright Reports $31.7 Million Loss After Flaws Lead to Surge
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State-controlled Chinese brokerage Everbright Securities Co. reported a trading loss of 194 million yuan ($31.7 million) and apologized to investors after errors in order-execution systems sparked the biggest intraday swing in China’s benchmark index since 2009.
Everbright said the Aug. 16 incident “brings negative impact to the company’s brand reputation and market image,” according to a statement submitted to the Shanghai Stock Exchange today. Everbright may face regulatory penalties that could affect its business development and results, it said.