Friday May 22, 2015
The chairman of solar panel firm Hanergy (HNGSF) lost $15 billion on Wednesday when shares in the company plummeted 47% in Hong Kong trading -- in about an hour. The company saw $18.6 billion wiped off its market value.
Trading in Hanergy shares was halted Wednesday pending release -- the company said -- of an announcement "containing inside information." The company has not commented further since, and the shares are still suspended.
Li owns just over 80% of Hanergy. He failed to show up for the company's annual shareholder meeting on Wednesday, which began as the shares were plunging. A company spokesperson said he was attending the opening of Hanergy's clean energy exhibition in Beijing instead.
The lack of a company statement is adding to the confusion surrounding the stock crash. Bespoke Investment, a New York research and wealth management firm, called "the Hanergy story a complete mess."
And there was another mystery crash in Hong Kong on Thursday. Goldin Financial and Goldin Properties, owned by billionaire Pan Sutong, nosedived more than 40%. Both companies said they had no idea why their shares were plunging, and that they had no information to disclose to investors. Like Hanergy, the two companies had soared to astonishing highs over the past year.
Investors, regulators and analysts have questioned Hanergy's rapid share rise, and how the company was turning a profit, for months. They've used the company as an example of the risk of investing in emerging markets.