SHANGHAI -- China Everbright Securities (CES) said on Thursday the company's director and president Xu Haoming has resigned and trading of its shares would be suspended Thursday afternoon.

Yuan Changqing, board chairman of the company, will replace Xu as the temporary president, the company said in a statement to the Shanghai Stock Exchange.

Trading of CES shares will be suspended from 1:00 pm Thursday and will resume on Friday, the statement added.

Flaws in CES's strategy trading system resulted in the placement of a huge number of buy orders at market prices last Friday. CES suffered an overall loss of 196 million yuan during trading on August 16.

The erroneous trade caused a swift rise in domestic A-share stocks, and the benchmark Shanghai Composite Index spiked 5.96 percent within three minutes on Aug 16.