The next day, the Shanghai Stock Exchange issued the Emergency Notice on Strengthening the Supervision of Treasury bond futures trading, which made six provisions on the supervision of treasury bond futures trading, namely, (1) from February 24, 1995 to stop the trading price of treasury bond futures; (2) Strictly strengthen the management of the maximum position contract limit; (3) Establish a customer position limit system; (4) It is forbidden for member companies to borrow positions from each other; (5) Control the use structure of position limit; (6) Strictly manage the use of treasury bond futures funds. At the same time, in order to maintain market stability, a special session of agreement clearing was held.
After the incident, the Ministry of Supervision, the China Securities Regulatory Commission and the State Secrecy Bureau jointly formed an investigation team to investigate the incident with the cooperation of the Shanghai Municipal Government. And announced the situation and treatment results on September 20. The investigation results show that the "327" variety event of treasury bond futures in Shanghai Stock Exchange is a storm of treasury bond futures caused by a few large trading companies, such as Shanghai Wanguo Securities Company and Liaoning Guofa (Group) Co., Ltd., deliberately operating illegally, manipulating the market, distorting the price and seriously disrupting the market order when the treasury bond market is developing too fast.
The investigation results show that the actual direct responsible person, Shanghai Wanguo Securities Co., Ltd., illegally cooperated and held positions beyond the limit without authorization, and the position of "327" only exceeded the maximum limit of all varieties approved by the exchange. Under the great pressure of abnormal market fluctuation and price increase, the main person in charge of the company knew that he had seriously violated the trading rules and made a lot of wrong decisions to suppress the price by short selling orders in order to reverse the company's huge losses, which caused great confusion in the market. The investigation also pointed out that another person responsible for the incident was Liaoning Guofa (Group) Co., Ltd., and the main person in charge of the company concentrated the short positions of several related households under the name of a company in Hainan on the morning of February 23, and illegally sold them through Wuxi Guotai Futures Brokerage Company (which was disqualified by China Securities Regulatory Commission according to law) in an attempt to lower the price in order to achieve the purpose of reducing losses or profits. In the case of ineffective suppression, it took the lead in turning over more, creating market illusions and disrupting market order. Before the incident, the company and its air-related households still had more than 20,000 joint operations and over-limit positions1.20.
The survey results also believe that the Shanghai Stock Exchange should also bear certain responsibilities for violations. The Shanghai Stock Exchange underestimates the risks caused by excessive speculation in the market, the trading laws and regulations are imperfect, the risk control is lagging behind, and the supervision and management are lax, which leads to the turmoil of treasury bonds futures caused by serious illegal transactions in just a few months, which has caused extremely bad influence at home and abroad.
After in-depth and extensive investigation and evidence collection, the Ministry of Supervision, the China Securities Regulatory Commission and other departments, in accordance with relevant laws and regulations, imposed disciplinary sanctions such as dismissal from public office and revocation of administrative leadership positions and other organizations. Those suspected of violating the criminal law are transferred to judicial organs for handling, and securities institutions that violate the regulations are dealt with economically.
The "327 Incident" shocked the securities and futures circles in China. Under the mediation of the arbitration organ, the liquidation was agreed on February 27 and 28, but the effect was not satisfactory. March 1, forced liquidation.
The situation is just clear and it is worth holding two sessions. The accountability of "March 27 incident" has become the focus of NPC deputies and CPPCC members. Later, the Commission for Discipline Inspection and the Ministry of Supervision of the CPC Central Committee, together with the China Securities Regulatory Commission, the Ministry of Finance, the People's Bank of China, the Supreme People's Procuratorate and other relevant departments, formed a joint investigation team, conducted an investigation for more than four months with the cooperation of the Shanghai Municipal Government, and made a serious treatment on this basis.
Global Securities Company was reorganized, and Chairman Xu Qingxiong and Vice Chairman and President Guan Jinsheng resigned at the same time. Guan Jinsheng was jailed.
Liao Guofa, the second protagonist of the "327 Incident", was presided over by the Gaoyuan and Gaoling brothers from Shenyang. After the "327 incident", in order to recover huge losses, in March, he tried to turn over a profit and continued to speculate on the "329" variety in the bond market, resulting in losses again. The Liao case is not only a violation of securities and futures, but also a serious crime such as financial fraud, involving tens of billions of yuan.
After the "327 Storm", the exchange adopted measures such as increasing the margin ratio and setting up a price limit board to curb the speculative atmosphere of treasury bonds futures. However, due to the particularity of treasury bond futures and the economic situation at that time, the transaction was still turbulent, and a 3 19 storm was brewing on May 10 of that year. On May 17, China Securities Regulatory Commission decided to suspend the trial of treasury bond futures trading because China did not have the basic conditions to carry out treasury bond futures trading at that time. At this point, China's first financial futures product died.
The "327 Storm" is only two days away from the Bahrain incident that triggered the Asian financial turmoil. The "327 Storm" also clearly revealed that our internal and external monitoring capabilities for high-risk markets are quite insufficient. There are three specific reasons for the "327 incident": First, the launch of futures business is quite hasty, which not only lacks experience, but also lacks corresponding regulatory laws and regulations. More importantly, it lacks the necessary understanding of market risks. Second, the speculative atmosphere in the treasury bond futures market is extremely strong, and illegal market making, excessive positions and insider trading are quite serious. Individual brokers engage in vicious speculation and deliberately violate the rules, but lack supervision. They can even make tens of millions of transactions in a short period of time, with no corresponding margin and no immediate warning mechanism. Third, the news about the interest rate increase and discount of 327 coupons was the fuse that triggered this incident. From a historical point of view, the "327 incident" did not detonate the financial crisis like the Bahrain incident, but it was fortunate in misfortune, and the lessons it left were of course quite profound.
However, the direct consequence of the 327 national debt incident is that China's futures trading is choking on food. So far, when it comes to futures, it is associated with dark sides such as behind-the-scenes manipulation, which makes this market, which should not face the public, bear too many bad reputations. If the international futures industry does not come soon after China's entry into WTO, China's futures industry will still not hear the voice of "open sesame". For the 327 national debt incident, in addition to re-understanding the lessons to be learned to better avoid related risks, we should also properly eliminate its negative effects. As an important hedging tool, the futures market should be restored. In particular, regarding the liberalization of state-owned enterprises' entry into the market, 1996, the state stipulated that funds in the financial system should not enter the futures market, and subsequently issued guidance on taxation and finance for enterprises' entry into the market. 1999 stipulates that state-owned enterprises can only hedge several related products and cannot participate in speculation, which seriously limits enterprises' participation in the futures market and needs to be reconsidered.
After the incident, Guan Jinsheng, president of IWC, was arrested on suspicion of illegal business operation, and was sentenced to 17 in/97 on charges of accepting bribes of 295,000 yuan and misappropriating public funds of 2.5 million yuan. It has nothing to do with illegal operation.