An investor is seen at a brokerage house, east China's Shanghai, Aug. 16, 2013. The Shanghai Stock Exchange (SSE) said Friday afternoon that the investment strategy department of Everbright Securities Co., Ltd. had encountered a problem in its arbitrage system while operating with its own funds during the morning trade at the bourse, following a dramatic spike in domestic stock indexes. (Xinhua/Ding Ting)
BEIJING, Aug. 16 (Xinhua) -- Chinese shares ended in negative territory on Friday following a dramatic morning surge led by finance and oil heavyweights.
The benchmark Shanghai Composite Index inched down 0.65 percent, or 13.43 points, to end at 2,068.45. The Shenzhen Component Index shed 0.74 percent, or 60.78 points, to finish at 8,168.09.
Combined turnover on the two bourses grew sharply to 250.6 billion yuan (40.6 billion U.S. dollars) from 189.3 billion yuan the previous trading day.
The Shanghai Index peaked at 5.6 percent at one point before pulling back to 3.19 percent at the end of the morning trade.
The Industrial and Commercial Bank of China (ICBC), the country's largest lender, and PetroChina, the nation's biggest oil and gas producer, both rose briefly near the daily increase limit of 10 percent in the morning trade.
The Shanghai Stock Exchange (SSE) said Friday afternoon that the department of investment strategy of the Everbright Securities Company, Ltd. encountered a problem in its arbitrage system when it is operating on its own funds during the morning trade at the bourse.
So far there is no official conclusion as to whether there is a direct correlation between Everbright's trading error and the market's sudden surge.
The financial sector was the only winner on Friday, with its sub-index edging up 0.16 percent. Ping An Bank Co., Ltd. gained 3.73 percent to end at 10.58 yuan per share. Sealand Securities Co., Ltd. added 2.32 percent to 13.25 yuan.
The printing and packaging industry led Friday's losses, with its sub-index falling 4.36 percent. Contemporary Eastern Investment Co., Ltd. lost 4.39 percent to end at 9.37 yuan. Bluefocus Communication Group Co., Ltd. dipped 3.60 percent to 45.02 yuan.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, tumbled 3.0 percent on Friday to close at 1,132.09 points.
Chinese stocks surge in morning trade
BEIJING, Aug. 16 (Xinhua) -- Chinese shares surged suddenly near the end of morning trade on Friday, led by financial sector and oil giants.
The benchmark Shanghai Composite Index reversed early losses to shoot up 3.19 percent and end the morning trade at 2,148.39 points, a two-month high. The Shenzhen Component Index rose 2.91 percent to end at 8,468.58 points in the morning session. Full story
SSE confirms Everbright Securities problems
BEIJING, Aug. 16 (Xinhua) -- The Shanghai Stock Exchange (SSE) said Friday afternoon that the investment strategy department of Everbright Securities Company, Ltd. had encountered a problem in its arbitrage system while operating with its own funds during the morning trade at the bourse.
The statement, posted on SSE's microblog at Weibo.com, was issued after a surprising surge during the morning session, led by the financial sector and oil giants. Full story