Hong Kong regulators are finally investigating Hanergy's stock implosion
Hanergy Thin Film Power Group, the solar technology company which propelled Li Hejun to become China's richest man, is now under formal investigation after last week's market collapse.
The stock fell by 47% just before trading closed on May 19, during the company's annual general meeting. Most of the decline happened in seconds, erasing four months of astonishing gains. The firm was already regarded as suspicious due to the bizarre behaviour of its stock, found by a Financial Times investigation.
Here's how it looked:
Here's exactly what Hong Kong's Securities and Futures Commission said:
The SFC wishes to clarify that a formal investigation into the affairs of Hanergy Thin Film Power Group Limited has been active and is continuing.
This statement is issued in accordance with the SFC's Disclosure Policy given the public interest following reports denying such measures have been taken.
The SFC will make no further comment about the investigation.
Bronte Capital visited a Hanergy factory and released their pictures of what appears to be a pretty inactive plant, raising even more questions about how the company could possibly be worth so much.