On August 16, 2013 (July 10, 2013 in the lunar calendar), Everbright Securities caused a daily limit due to operational errors. Who would have thought that because of the "black hole" operation of the investment department of a securities company, the A-share Shanghai Composite Index was shocked by a bizarre moment of "soaring into the sky" that is rare in history on August 16. The events triggered by this moment fell like dominoes and continued to ferment. The Shanghai Composite Index is "Strange" for Two Minutes On August 16, a surprise scene occurred in the A-share market. The Shanghai Composite Index skyrocketed strangely. It suddenly pulled up after 11 o'clock. In just 8 minutes, it pulled up from a drop of nearly 1% to a rise of nearly 2.5%. The market once hit 2200 points, setting a rebound high of 2,191.65. At 11:32, driven by the daily limit of Sinopec, PetroChina, ICBC and others, the Shanghai Composite Index soared by 5%. Financial media were the first to expose the changes on their official website and official Weibo. Screenshot of the stock time-sharing chart at the afternoon closing time, the market has different opinions on the reasons for the surge in the A-share market. The executives collectively shut down their phones, the first sound disappeared, and news spread. [Market Rumors] Rumor 1: The preferred stock pilot plan was announced after the market closed. Most of the shares of blue-chip stocks with large market capitalization were converted into preferred shares, and only dividends were received and were not in circulation. The same is also arranged for future fundraising. Agricultural Bank of China once had a daily limit. Rumor 2: According to exclusive information from 21st Century Network, the surge in A-shares this morning was due to Everbright Securities's 7 billion yuan oolong index. Rumor 3: At about 11:05 a.m. on August 16, Beijing time, China, a trader typed a wrong letter while buying a stock, mistakenly typing one million to one billion, causing the Shanghai Composite Index to suddenly surge by nearly 130 points. Rumor 4: Starting from September 1, t0 trading will be implemented for the constituent stocks of the Shanghai and Shenzhen 300 Index. Rumor 5: CIC's foreign exchange funds were concentrated in exchange for RMB in the past few days. They began to open positions in China financial stocks today and will continue to buy in the future. Goals: 1. Sell US dollars and maintain the exchange rate;2. invest in the domestic market with low P/E ratio in exchange for income;3. Break out arrogant short positions and maintain the stability of the domestic capital market. 13:55: The operator of the black dragon finger was designated as Ge Xinyuan's quantitative investment team of Everbright Securities. At 14:22 Everbright issued a formal announcement acknowledging that there was a problem with the arbitrage system. At 14:53, Chuanda's verification report had been submitted to the meeting. An order of 23 billion yuan was placed and a transaction of 7.2 billion yuan was completed, involving more than 150 stocks. Everbright Securities official website was also hacked for a time. 15:00 The Shanghai Stock Exchange announced that the transactions concluded will enter the normal clearing and settlement process. 15:17 [Ge Xinyuan's team refutes rumors] I would like to warn all of our friends who care about us: Today's incident has nothing to do with our Everbright Fuzun Ge Xinyuan's team. We are using Everbright's brokerage business channel, non-self-operated seats. Not that much money. Our simulation and production are isolated. Finance is also separated from the parent company. 16:30 A spokesperson for the China Securities Regulatory Commission said at a press conference on August 16 that the erroneous trading of Everbright Securities caused changes in the market on the morning of the 16th. The Shanghai Stock Exchange and the Shanghai Securities Regulatory Bureau are investigating the reasons, and no results have yet been available. 17:23 Everbright Futures exploded 7000 short orders: Deliberately short? According to data released by CICC at 4:28 pm, after the close of stock index futures today, Everbright Futures 'number of short orders held by the main contract IF1309 increased by 7023 lots, reaching an unprecedented 10194 lots, ranking first among all futures companies in short orders. According to the closing point of 2286 points, the total amount of the above-mentioned short orders exceeds RMB 6.9 billion, and the margin invested by the corresponding participants exceeds RMB 1 billion. Behind the noon stock market surge and plunge, Everbright Securities's "black hole finger" was looming. The closing results of stock index futures show that Everbright Futures 'short position in the stock index and Everbright Securities' abnormal purchase have formed a hedging relationship. [Analysis of the reasons] Everbright Securities's "black hole", the perpetrator of the "August 16 Stock Market Incident", instantly increased the market value of the entire A-share market by 340 billion yuan on Friday morning. However, the miracle of soaring prices did not continue. After only two minutes, the index fell again like a stone thrown high, and ended with a decline at the close. This means that Everbright Securities will suffer huge losses in the spot market. However, interested investors will find that CICC information shows that Everbright Futures, a subsidiary of Everbright Securities, held 10194 orders for the main stock index futures contract IF1309 after the close of trading on the 16th, a surge of 7023 lots from the previous day. Some people also came up with a more exaggerated calculation result. Everbright Securities held more than 7000 short positions on Friday. During the 100-point decline in the afternoon, Everbright Futures should have made a net profit of 210 million yuan. Insiders analyzed that if Everbright Securities is flexible and bold enough, they will not lose money and may even make money. As long as they short short enough futures to lock in losses, they can even expose risks and increase net short positions. [Survey Results] On August 16, 2013, Everbright Securities 'operational error caused A shares to surge by 5.96%. Xu Haoming said,"I am deeply disturbed by the consequences of the incident and feel very heavy. I sincerely apologize to investors." On August 19, Everbright Securities 'fixed-income division made another mistake in trading, selling 10-year treasury bonds at ultra-low prices. Everbright Securities's efforts were offset by the resurgence of bond trading "black holes". The China Securities Regulatory Commission reported the punishment decision for Everbright's "black dragon finger" incident. The China Securities Regulatory Commission determined that Everbright Securities 'abnormal trading constitutes a number of illegal activities such as insider trading, misleading information, and illegal internal control management regulations of securities companies. The China Securities Regulatory Commission said that it will impose "top" administrative penalties on Everbright Securities and relevant responsible personnel, confiscate Everbright Securities 'illegal income of more than 87.21 million yuan, and impose a fine of five times, with a total amount of 523 million yuan. Xu Haoming, Yang Chizhong, Shen Shiguang and Yang Jianbo, the relevant persons responsible for the abnormal trading incident of Everbright Securities, will be given a warning, fined 600,000 yuan and banned from entering the securities and futures market for life. Everbright Securities will be stopped from engaging in self-operated securities business (except fixed income business), the approval of its new business will be suspended, and Everbright Securities will be ordered to rectify and punish relevant responsible personnel for an unlimited period of rectification.