EVERBRIGHT Securities Co. sold between Nov. 16 and Dec. 31 stocks for 2.81 billion yuan (US$464 million), 52 percent of the 5.38 billion yuan it spent on securities in a trading error in August last year.

    The Aug. 16 trading glitch sent the benchmark Shanghai Composite Index up 5.6 percent in minutes, cost the Shanghai-listed company 523.29 million yuan in fines, saw it prohibited from proprietary trading and temporarily banned from applying for new business. Four of its executives were banned for life from the securities industry.

    The stocks sold by the brokerage as of Dec. 31 account for 52 percent by price of those bought in error.

    The company Aug. 16 accidentally placed 23.4 billion yuan in buy orders for exchange-traded funds linked to blue chips and 7.27 billion yuan of orders were executed by the midday break. It reduced its position by 1.89 billion yuan in the afternoon.

    Since November, company has sold an average 112 million yuan in stocks over 25 trading sessions via auctions. The largest daily sale was 292 million yuan, China’s ninth-largest brokerage by assets said Saturday in a filing to the Shanghai Stock Exchange. The company agreed to a three-month lock-up period for the stocks it bought.

    It isn’t know if the brokerage sold at a profit or a loss. The Shanghai index fell 0.9 percent between Nov. 16 and Dec. 31.

    China’s Supreme People’s Court (SPC) in November designated that courts should accept civil compensation cases involving Everbright Securities’ erroneous trading in August.

    (SD-Agencies)