SHANGHAI Feb 14 The former head of a trading
unit at Chinese brokerage Everbright Securities said
on Friday that he has filed a lawsuit against China's securities
regulator to contest a punishment he received for insider
trading last year.
Yang Jianbo, former general manager of a high-frequency
trading unit at Everbright, and three colleagues were banned for
life from the securities industry and fined 600,000 yuan
($99,000) each by the China Securities Regulatory Commission
(CSRC) in late August after its investigation determined that
they had committed insider trading.
Yang told Reuters his lawyer submitted a complaint to
Beijing First Intermediate Court on Feb. 8. By law, the court
has seven working days to decide whether to accept Yang's
The CSRC found that after a computer malfunction during
morning trade on Aug. 16 that caused Everbright to take a 7.27
billion yuan long position in a commonly-traded exchange-traded
fund, Yang and his colleagues committed insider trading by
partially unwinding that position in afternoon trade without
properly disclosing the original trading error.
Officials at CSRC declined to immediately comment.
($1 = 6.0636 Chinese yuan)
(Reporting by Gabriel Wildau and Zhang Xiaochong in BEIJING;
Editing by Kazunori Takada)