August 16^th, China's major brokerage Everbright Securities Co Ltd. reports to the Shanghai Stock Exchange that its trading system came across with a trading error, which shocked China's stock market on Friday.

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Everbright Securities Company Ltd. is one of the largest securities brokerage by assets in China, controlled by state-owned financial conglomerate, China Everbright Group. It was founded in 1996 and is based in Shanghai.

On August 16^th, millions of Chinese investors took a roller-coaster ride after a trading error by Everbright Securities. In late morning trading, the benchmark Shanghai Composite Index spiked 5.96 percent within three minutes, up to 2198 points (closing at 2076 points). More than 70 stocks, led by bank and oil shares, rose by the daily limit of 10 percent.

However, during afternoon trading of August 16^th, the gains in the morning were nearly vanished with the shanghai Composite Index closing down 0.65 percent.

At 2 p.m. on August 16^th, Everbright Securities Company Ltd. reports to Shanghai Stock Exchange that its investment strategy department trading system encountered problems in its arbitrage system when operating with its own funds during morning trading. Later, a rumor comes out that Everbright Securities Company Ltd. has submitted an application to the Shanghai Stock Exchange for voiding today's trading.

At 3 p.m. on August 16^th, Shanghai Stock Exchange issued an important notice in its official micro blog, saying that all Friday trading will go into the normal settlement and entrustment process.

The official notice means even though Everbright Securities Company Ltd. made a trading error, the gains and losses in today's trading are still valid.