[Asia Economy Reporter Oh Ju-yeon] Trading of Chinese stocks through domestic securities firms experienced settlement disruptions on the 6th, causing confusion. All domestic securities firms that settle Chinese stocks through the Korea Securities Depository (KSD) faced the same issue, but recovery is currently underway sequentially.
According to the securities industry on the 6th, settlement disruptions occurred for the previous day's trades of Shanghai A-shares and Shenzhen A-shares at the KSD, resulting in delays in the sale of some Shanghai A-shares and Shenzhen A-shares on that day.
The delay is reported to have been caused by a problem within Citibank Hong Kong, the custodian institution.
A KSD official stated, "Order instructions were properly processed, but due to a system issue at the local custodian Citibank Hong Kong, settlement failures occurred for some transactions," adding, "For the sales, payments will be made sequentially to investors during the morning today."
They also explained that any losses arising from the settlement disruption will be fully borne by the custodian, Citibank Hong Kong.
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