SHANGHAI, Feb 14 (Reuters) - 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 lawsuit.
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)