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Chinese Trader Accidentally Sold off 5 Million Company Shares. His 'Fat Finger' Was Held Responsible

Image for representation.

Image for representation.

TCL Technology Group's managing chairman Li Dongsheng has issued an apology for the trade on his personal Weibo account, adding he personally made the decision to buy back the stock.

As stocks of Chinese company TCL Technology Group neared a record high, a trader's classic 'fat finger' mistake resulted in him selling off five million company shares from his account.

Quoting the Guangdong-based panel maker's filing to the Shenzhen exchange, a report in Bloomberg said the sale was made at 1:03pm on Tuesday by a trader managing chairman Li Dongsheng's accounts who had typed in the wrong stock code.

But was his 'fat finger' responsible for the accidental sale?

Imagine someone entering a trade and pressing the button next to the one he or she meant to on the keyboard, literally because his or her finger was too big. It has become a colloquialism that refers generally to human error, either a literal typing error or a more figurative mistake. As many financial institutions have discovered over the years, an extra zero here or there can make a huge difference.

The report said the trade coincided with strong gains for the stock, which on Wednesday jumped 5.6% to close at a record high.

Li later issued an apology on his personal Weibo account, saying he personally made the decision to buy back the stock. He stressed his confidence in the business and said the fees from the transactions would come out of his own pocket and he would comply with any legal consequences.

first published:September 02, 2020, 20:09 IST