Major shareholder sold shares by “big finger” mistake, making it the third case involving a Chinese company in a week

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BRYAN R. SMITH / AFP via Getty Images

Location of the checklist

  • The Shenzhen Changfang Group said in a security deposit that a major shareholder accidentally sold 16,000 shares on Friday.
  • This is the third case of big fingers in China in a week.
  • The company said shareholder Nie Xianghong acting on behalf of investor Li Dichu chose the wrong ticker.
  • Sany Heavy Industry and TCL Technology Group also reported fat finger errors during the week.
  • Visit the Business Insider homepage for more stories.

The big finger is again to blame. This time, the Shenzhen Changfang Group said a shareholder accidentally sold 16,000 shares on Friday, the third such incident involving a Chinese company in a week.

The professional manufacturer of LED lighting products said that Nie Xianghong, a shareholder acting on behalf of investor Li Dichu, mistakenly sold 16,000 shares on Friday by inserting the wrong ticker, showed a regulatory filing on Sentieo, a financial research site.

Read more: Bank of America Takes Indicators Under the Radar Showing Huge Swans of Stock Market ‘Running on Steam’ – and Warns September Crisis is Just Beginning

Deposits show after the sale Xianghong held 6.6 million shares.

This follows a trading error by Sany Heavy Industry and Co on Thursday, which saw shareholder Mao Zhongwu offload 96,700 shares, Bloomberg reported on Monday.

Previously, a TCL Technology Group trader accidentally sold 5 million shares. A safety record on Tuesday showed that Chairman and Founder Li Dongsheng apparently sold the shares and bought them back two hours later with a profit of $ 21,000.

Shenzhen Changfang Group’s share price jumped 158% last month, from 2.68 ($ 0.39) yuan to 6.92 yuan ($ 1.01) at 7:17 a.m. AND.

Big finger trades are the result of human error hitting the wrong key on a keyboard. Sometimes their impact on the market can be powerful.

Read more: ‘Never been this extreme’: Renowned stock marketer says today’s ‘hypervalued’ market involves worst market returns in history – and expects 66% collapse from current levels

A number of apparent big finger transactions in rapid succession can make it difficult to determine whether they are intentional or due to human error.

Beijing analyst Lv Changshun Zhonghe Yingtai Management Consultant Co told Bloomberg, “The way I imagine it happened is that these executives wanted to test whether it was possible to sell their shares on the open market. ”

Changshun added, “Call them mistakes, but they were made on purpose. Managers naturally want to make a profit. “

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