Timeline

Aug 16

11:05 am

The Shanghai Composite Index spiked by around 100 points within two minutes, with turnover totaling 7.8 billion yuan ($1.27 billion).

11:32 am

An exclusive source from 21st Century Business Herald said that the surge was caused by a move by Everbright Securities Co Ltd to invest 7.2 billion yuan into the buying.

11:43 am

A notice was released by the Shanghai Stock Exchange, saying the market was operating normally.

2:50 pm

Everbright Securities admitted there was a problem in the arbitrage system, which was under examination and investigation by the company.

4:27 pm

The China Securities Regulatory Commission said that further investigation on the incident caused by Everbright will be carried out immediately.

5:02 pm

Everbright Futures Co increased its short positions in the benchmark September stock-index futures contract by 7,023 lots worth about 4.82 billion yuan after the closing of the market.

Aug 18

3:42 pm

The regulatory commission said there was no discovery of manual operation mistakes at Everbright Securities but the risk-control system of the company has certain loopholes. Further investigation is undertaken by the Shanghai bureau of the securities regulatory commission.

4:35 pm

Everbright issued a notice to admit an incident and the negative effects it has had on the company.

6:00 pm

A news conference was held by Everbright Securities to explain the incident to the media.