Everbright Securities Co., the company that roiled China’s equity market two weeks ago with errant trades, said two executives resigned amid record penalties imposed by regulators after an investigation.
Assistant President Yang Chizhong and Board Secretary Mei Jian tendered letters of resignation to the board yesterday, according to two statements the company submitted to Shanghai Stock Exchange. Vice President Xue Feng was appointed as acting board secretary before a replacement is found, it said.
The broker was fined a total of 523 million yuan ($85 million) after an investigation into 23.4 billion yuan of erroneous buy orders found it traded on inside information, the China Securities Regulatory Commission said yesterday. Yang and Mei were fined 600,000 yuan and 200,000 yuan, respectively, it said.
“This incident exposed big problems in our internal control, risk management and rule-abiding operations,” today’s statement said. “The company and relevant personnel took wrong measures” that constituted insider trading, giving misleading information and other illegal activities, it said.
Four people including ex-President Xu Haoming will be banned from markets for life and the brokerage was barred from most proprietary trading, CSRC said. Xu resigned last week and the brokerage suspended Yang Jianbo, the head of its proprietary trading business. The firm estimated it lost 194 million yuan on the trades, based on Aug. 16 closing prices, and said the figure may change.
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