The Everbright Incident in China

The Everbright Incident

A glitch in Everbright Securities electronic systems caused a spike in China's CSI300 index, which tracks the largest listed firms in China (see below for more details on CSI300 and what stocks it contains). After the spike, share value of around $100bn was wiped off the index, in a single day. The firm now has a ban on proprietary trading for three months.  The firm itself stated that the glitch cost around $30m.

Background on Everbright

Everbright was founded in 1996 and is headquartered in Jing'an district, Shanghai (named after the Jing'an Temple).

Background on CSI300

Some of the larger firms within the CSI300 are Ping An Insurance Group, Citic Securities and Bank of Communications (one of the largest banks in China founded in 1908). Companies must be trading for at least three months on Shanghai or Shenzhen stock exchanges before even being considered for inclusion in the index.

CSI refers to China Securities Index Company Limited, who compile the index.