In the past four years, China had lost more investor money than any country in the world. The current largest swing in the benchmark equity index of the country since 2009 further threatened to erode the confidence of investors in the nation's stock market.
Last August 16, a trading error at Everbright Securities Co. roiled China's shares that prompted a 53% surge in volumes. The surge caused a swing of more than 6% in the Shanghai Composite Index. During the morning session, the gauge took a 5.6% gain in two minutes after a loss of as much as 1%. The day ended with a 0.6% drop for China's shares.
According to a securities regulator, Everbright's erroneous buy orders ignited the early rally. The Chinese stock index had fell 40% from its August 2009 high. This erased approximately USD$644 billion market value for the country's shares which has the second biggest economy in the world.
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