BEIJING: China’s Hanergy Thin Film Power Group lost nearly half its market value of almost US$40 billion in 24 minutes here the other day, prompting trade in the stock to be suspended and leaving analysts just as puzzled about the sudden drop as they had been about a long run-up in the share price.
The manufacturer of solar panel-making equipment, controlled by founder Li Hejun, said in a statement that trade had been suspended, “pending release of an announcement containing inside information.”
Hanergy officials did not comment on the company’s share price movement yesterday.
However, a source familiar with the situation said the company was under investigation by Hong Kong’s market watchdog for alleged market manipulation.
The source said the Securities and Futures Commission had been investigating Hanergy Thin Film Power Group for several weeks.
A spokesman for the SFC declined to comment.
Before the plunge, Hanergy had seen its value climb fivefold since September. At its share price peak in March, it was worth US$48 billion, more than its nearest two dozen rivals combined and making Li one of China’s richest men — even as analysts and market watchers questioned the validity of some of its bullish proclamations.
The stock’s precipitous tumble came shortly after the beginning of the company’s annual general meeting in Hong Kong. Li did not attend the meeting, and the company’s chief executive declined to comment on the share price plunge, according to local online media reports.
Chinese mainland media later said Li had attended an opening ceremony for a new company center in Beijing yesterday morning, which a representative for Hanergy later confirmed.
The 47 percent slide in the stock price left the company with a market value of US$21 billion.
More than 170 million Hanergy shares were traded in the first hour of yesterday’s trading session, far more than its daily average over the past month, according to Thomson Reuters data.
