On Sunday afternoon, Everbright Securities issued the "Announcement on Major Matters of Everbright Securities Co., Ltd." to explain the "Oolong Index" incident on August 16.

After preliminary verification, the main cause of this incident was a problem with the arbitrage strategy system used by the Strategic Investment Department. This system includes two parts: the order generation system and the order execution system.

During the inspection, it was found that the order execution system failed to effectively verify and control the amount of available funds when placing market orders for high-frequency trading, and that defects in the order generation system could lead to the generation of unexpected orders under certain circumstances.

Due to flaws in the order generation system, 26,082 unexpected market price orders were generated instantly within 2 seconds after 11:05:08; due to flaws in the order execution system, the above-mentioned unexpected huge number of market price orders

is sent directly to the exchange.

Hope it will be adopted.