US$280,000 returned in fat-finger case

A Shanghai company has agreed to return 1.8 million yuan (US$280,000) to a Beijing company in the first case of fat-finger trading on China's OTC board, after court mediation.

A Shanghai company has agreed to return 1.8 million yuan (US$280,000) to a Beijing company in the first case of fat-finger trading on China’s over-the-counter board, after mediation by the Pudong New Area People’s Court.

On December 16, 2016, a man surnamed Wang represented the Beijing-based company, Xingyuan, to buy shares of Xinzhongli on the OTC board, a platform for trading non-listed shares operating under price-bidding mechanism.

Wang had planned to buy 10,000 shares of Xinzhongli — 6,000 from the Shanghai company, Hezhili, and 4,000 from a Shenzhen company Hengtai Jiuzhou — at 4.30 yuan apiece, the court said, but he mistakenly typed 430 yuan on the computer.

Realizing the error quickly, Xingyuan asked the two companies to cancel the transactions but they failed to reach an agreement.

On April 7, 2017, Xingyuan filed a lawsuit against Hezhili in Shanghai.

After the court’s mediation, Hezhili agreed to return 1.8 million yuan to Xingyuan, which can still hold the 6,000 shares.

Xingyuan has also sued Hengtai Jiuzhou in Shenzhen.


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