Mysterious 32-Minute Glitch Leaves Shenzhen Bourse Traders on Hold
What’s new: Confirmation of some stock trading on the Shenzhen bourse was delayed due to trading system fault on Thursday morning, as multiple investors said they had failed to receive timely confirmation from the bourse when placing or canceling transaction orders.
The Shenzhen Stock Exchange (SZSE) later admitted (link in Chinese) the fault, saying it lasted for a 32-minute period from 9:15 a.m. to 9:47 a.m., and offered an apology for “any inconvenience this may cause to investors.” The bourse added that stock transactions themselves worked as normal.
Investors’ response: Many investors were not satisfied with the SZSE’s response, referring to losses caused by the trading system’s glitch. One investor said he placed an order twice because the first order didn’t show up and he thought it hadn’t been placed due to a bad internet connection. Some other investors complained that they were unable to sell shares in time as well.
Impacted by the system failures, the tech-heavy ChiNext Index fell 0.63% in half an hour after the market opened, and dipped 0.81% by the lunchtime break.
About the trading system: The SZSE’s current trading system went online in June 2016. In preparation for listing on its Nasdaq-style ChiNext board under a registration-based IPO mechanism, the SZSE tested the trading system in early July, and it appeared to work well overall then.
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