Hong Kong Regulator Says Hanergy Under Probe After Li Denial
byJasmine WangFrederik Balfour
May 28, 2015
Hong Kong’s markets regulator confirmed it’s investigating Hanergy Thin Film Power Group Ltd., brushing aside a denial from the chairman of the solar company that a probe was underway.
“A formal investigation into the affairs of Hanergy Thin Film Power Group Ltd. has been active and is continuing,” the Securities & Futures Commission said Thursday in a statement. Continue reading
http://www.wsj.com/articles/hanergy-bulk-of-stock-collapse-occurred-in-less-than-a-second-1432316315
Hanergy: Bulk of Stock Collapse Occurred in Less Than a Second; Trading pattern echoes similar move seen in May 2010 ‘flash crash’
JACKY WONG And SCOTT PATTERSON
Updated May 22, 2015 6:11 p.m. ET
The collapse of a Chinese solar company’s shares this week was caused by a sudden wave of rapid-fire sell orders that sank the price in less than a second.
An analysis of trading data by The Wall Street Journal and interviews with market participants and analysts shows that the selling began with several large sell orders on Wednesday. Those orders were then followed by a wave of erratic computer-driven trades that sank the company’s stock by more than 25% in fractions of a second. Continue reading
A Glimpse At The Market Endgame: How China’s (Formerly) Richest Man Crashed His Own Stock When He Tried To Sell
Tyler Durden on 05/22/2015 18:17 -0400
On Wednesday, we reported on what was certainly the biggest market news of the week when in under one second, Chinese solar company Hanergy Thin Film crashed by nearly 50% due to what are still unknown reasons. As a reminder, before its crash and indefinite trading suspension, Hanergy’s market value was higher than all other listed Chinese solar companies combined and six times the value of First Solar, the biggest producer of thin-film solar panels.
Aside from the dramatic move, the reason why the wipeout of this tightly held stock was particularly memorable is because it took with it some $14 billion or nearly half of majority owner Li Hejun’s $30 billion fortune, who as we reported previously, is China’s richest man, having recently overtaken Alibaba’s Jack Ma. Or rather was.
A quick tangent into how Li built up his stratospheric paper wealth on very short notice. Continue reading
http://www.valuewalk.com/2015/05/hanergy-stock-corruption
Did Anti-Corruption Campaign Lead To Plunge In Hanergy Shares?
Posted By: Mark MelinPosted date: May 22, 2015 02:58:26 PMIn: BusinessNo Comments
A Chinese-based solar company with a history of unusual trading activity that hard garnered a $39 billion valuation crashed in value Wednesday, erasing $19 billion in value. The crash comes shortly after Hanergy Thin Film Solar Group Ltd. Chairman Li Hejun boosted the size of his short exposure in the company he leads on the same day he adding long exposure. Speculation is the price plunge might be related to an anti-corruption probe in China, a topic that was discussed in a recent hedge fund investment letter.
Odd Hanergy long / short behavior precedes stock price plunge
Bloomberg reports that Li added 26.4 million shares at an average of HK$7.28 each on May 18, citing to two separate filings to Hong Kong Exchange. This long exposure comes as he increased his short exposure to 7.71 percent to 5.81 percent of the share’s float on the same day.
Li has not provided explanation regarding his short position, a Business Insider report notes, pointing out that Hanergy’s biggest client is its parent company, Hanergy Holding Group. The holding company was reported to have used its ownership in the solar company to take out a bank loan that it has failed to repay.
Such related party relationships have been sharply questioned by activist Hedge Funds in the past leading to rapid prices crashes, but no activist activity is documented to have been behind Wednesday’s 47 percent drop in the stock price. As previously revealed on ValueWalk, New York-based Lakewood Capital announced they had shorted the stock in their April 23 letter to investors, calling the company “perhaps the most astonishing stock in the entire market today.” Continue reading
http://asia.nikkei.com/print/article/94375
http://asia.nikkei.com/print/article/94513
May 22, 2015 1:31 am JSTTrouble in China
Lixil’s overseas ambitions hit snag amid accounting probe
TOMOKO WAKASUGI and SO MATSUI, Nikkei staff writers
Grohe subsidiary Joyou was an important part of the emerging-market strategy laid out by Lixil President Yoshiaki Fujimori, right.
TOKYO — Accounting irregularities at a German unit that operates in China pose an unexpected obstacle to Lixil Group President Yoshiaki Fujimori’s efforts to boost the Japanese company’s overseas sales to more than 1 trillion yen ($8.19 billion) by fiscal 2020.
The Tokyo-based company acquired Germany’s Grohe, a maker of high-end faucets used in famous hotels around the world, in 2014, giving it a 72% stake in Grohe subsidiary Joyou. Although Lixil had bought Grohe to gain a foothold in Europe, Joyou, with its roughly 4,000 Chinese stores, was key to Lixil’s emerging-market strategy. It apparently logs annual sales of around 50 billion yen a year. Continue reading
http://www.reuters.com/article/2015/05/22/idUSASM000A7F20150522
Chinese ‘Virus’ Spreads To Germany: Meet The Company That Went From Record High To Zero In 1 Week
Tyler Durden on 05/21/2015 13:30 -0400
It appears the frauds, falsehoods, and f##king fallacies are all being exposed at the same time. While we have noted three companies that have collapsed in the last week – destroying their billionaire owners’ wealth in the process – it appears the Chinese capital destruction virus has spread to Germany. Joyou AG – a Chinese affiliate of German bathroom manufacturer Grohe – has collapsed from record highs a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation.
The following ‘real company’ employs over 4000 people in Nan An, China. Jianping “Dorothy” Wu is the CFO. It was a €400 Million company a week ago… And this just happened…
Hong Kong Investors Want More Oversight After $35 Billion Wipeout
May 22, 2015
After $35 billion in market value was erased from three Hong Kong-listed companies over two days, investors are asking if the city’s regulator should have done more to prevent the sudden selloff.
Goldin Financial Holdings Ltd. and Goldin Properties Holdings Ltd., controlled by billionaire Pan Sutong, plunged more than 40 percent Thursday. A day earlier, Hanergy Thin Film Power Group Ltd. tumbled 47 percent in 24 minutes before trading in the Chinese solar company’s shares was suspended. The stocks, which had surged at least 500 percent in the 12 months before the rout, can also be bought and sold by mainland investors through an exchange link. Continue reading
http://www.reuters.com/article/2015/05/22/us-toshiba-probe-idUSKBN0O703720150522
Fri May 22, 2015 12:21am EDT
Toshiba extends accounting probe to three more business units
Japan industrial conglomerate Toshiba Corp said on Friday it would investigate accounting practices in its TV, computer and chip businesses, extending a probe already under way into irregularities that led to profits being overstated by at least $415 million in recent years. Continue reading
http://english.caixin.com/2015-05-21/100811386.html
05.21.2015 18:24
Solar Panel Maker Suffering HK Share Sell-Off ‘Failed to Repay Loans’
Hanergy Holding Group used shares in listed unit to take out bank loans it has been unable to repay, sources close to company say
By staff reporters Huang Kaixi, Wu Hongyuran and Yu Ning and Hong Kong correspondent Wang Duan
(Hong Kong and Beijing) – The solar panel manufacturer whose listed subsidiary has suffered a sell-off of shares in Hong Kong failed to repay bank loans, sources close to the parent company say. Continue reading
http://www.yicai.com/news/2015/05/4620825.html
基金经理告诉你汉能是一只怎样的股票以及它是怎样被砸盘的
一财网 熊鹏 2015-05-21 14:41:00
20日，港股汉能薄膜发电股价暴跌47%，几近腰斩。25分钟里的崩盘，到底发生了什么？为什么被砸盘？来看看一位基金经理的专业分析。
汉能股价在25分钟左右暴跌47%，引发市场热议。各种猜测四起。我们无意于各种猜测，仅仅从数据角度看看发生了什么。这份笔记只是我们内部总结，提出的一些看法也是我们内部讨论的议题，并无正误之分，更无与人讨论之意。 Continue reading
AsianExtractor: Unearthing Accounting Fraud in Asia 