Shares of China's Everbright Sec open 10-pct limit down after trading resumes
SHANGHAI Aug 20 (Reuters) - Shares in China's Everbright Securities opened down 10 percent, the daily limit, after trading resumed in the wake of a glitch in the brokerage's trading system led to its accidental purchase of more than $1 billion of mainland shares.
Yuan-denominated A shares in Everbright Securities traded on the Shanghai Stock Exchange opened at 10.91 yuan ($1.78) per share, compared with 12.12 yuan at mid-session on Friday before trading in them was suspended on the discovery of the mistaken trades.
A slew of Chinese mutual funds and brokerages have lowered their ratings for Everbright Securities along with forecasts of the company's earnings in the coming two years.
The China Securities Regulatory Commission (CSRC), which will launch a formal investigation into Everbright, has barred the brokerage from selling the shares for the next three months.
The mistaken trades on Friday sparked a flash rally that created and then wiped out roughly $100 billion worth of share value on the CSI300 Index in the course of a single day, Reuters calculations show. The CSI300 tracks the largest listed firms in China. ($1 = 6.1229 Chinese yuan) (Reporting by Lu Jianxin and Kazunori Takada)
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