Shanghai-HK Connect program eliminates Hanergy
By Huang Ge Source:Global Times Published: 2015-7-27 23:23:01
Hanergy Thin Film Power Group, a solar-power technology company, was removed from the Shanghai-Hong Kong Stock Connect program, not long after it was eliminated from the Hang Seng Index, news portal caixin.com reported on Monday.The Hong Kong Securities and Futures Commission on July 15 asked the stock exchange in Hong Kong to suspend all dealings in Hanergy due to the collapse of its share price on May 20.
The Shanghai-Hong Kong Stock Connect program allows investors in Hong Kong and the Chinese mainland to trade eligible shares listed on both bourses via local securities firms or brokers.
It makes sense to remove Hanergy from the Shanghai-Hong Kong Stock Connect program considering what has happened to its shares, Yuan Xiong, an analyst with CITIC Securities, told the Global Times on Monday.
Yuan added that the company’s future was hard to predict, but it would find it difficult to raise funds from now on.
The company’s operations are still on track, a senior employee speaking on condition of anonymity told the Global Times on Monday. No further information could be disclosed, he stressed.
The Hang Seng Index announced on July 16 it would remove Hanergy from its Hang Seng Mainland 100 and other indices. That decision took effect on Monday.
Hanergy was also removed from the FTSE’s 50 and other indices on July 20, caixin.com reported.
Hanergy was the world’s largest solar-power technology company by market value before its share price collapsed on May 20.
Li Hejun, chairman of Hanergy, was for a while the richest Chinese after Hanergy’s stunning share price rise.