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Lessons must be learned from stock market glitch

chinadaily.com.cn | Updated: 2013-08-21 23:10

On Aug 16, the Shanghai Stock Index experienced a sudden jump of 5.96 percent, with several important shares reaching their top limit.

The incident was because of a computer error. The glitch has led to valuable lessons that must be learned, said a column on People's Daily (excerpts below).

After the glitch, the China Securities Regulatory Commission took immediate measures and prevented more damage from happening.

The accident still reveals loopholes, not least that the commission could have informed clients earlier.

Actually, events of this nature have also occurred in foreign markets.

To prevent it from happening again, supervision over markets and computers must be enforced.

On the website of China Securities Regulatory Commission there is a slogan in big, bold words. It reads: It is our job to protect the interests of investors.

They will live up to the words even more if they learn from the accident.

After all, one can never be too careful in stock markets.

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