AGRICULTURAL BANK OF CHINA LIMITED 中國農業銀行股份有限公司

Our take: Mr Ku had deduced that an algorithmic liquidity provider would take his warrants if he bid for the related shares. Bids cannot be "artificial" as they are binding and capable of being hit. Order queues are not measures of demand and supply, they are just a series of binding bids and asks. A lot of demand or supply is not displayed, including that which buys from the best ask or sells to the best bid. The philosophy behind these prosecutions is flawed; the SFC should not encourage people to expect a directional price signal from the order queues.

The wording of the announcement is almost identical to that of Agricultural Bank of China (1288) which reported a RMB 3915m "risk incident" last week.

In China, losing money is as easy as ABC.

As a former director he thereby enters the Webb-site Hall of Shame.

ABC tries to recover US$62m in an alleged letter-of-credit fraud. "Although neither the 1st nor the 2nd defendant was subject to criminal prosecution, it is the plaintiff’s case that this was not because the 1st and 2nd defendants are innocent. According to the plaintiff, CCB took the view that the criminal proceedings should take place in Mainland China whereas the relevant Mainland authorities decided not to prosecute on the ground of difficulties in securing witnesses and documents in Hong Kong."