Hanergy trade halt to stay

Hong Kong securities regulator has extended its suspension of Hanergy Thin Film Power’s stock dealings.

It also said its shareholders and affiliated persons had not sold any of their shares on May 20.

The Securities and Futures Commission stepped in today under a rare provision, which could allow the watchdog to halt stock trading.

Shares had already been suspended since May 20 at Hanergy’s request after they plunged by almost half in a spectacular meltdown that wiped out $19 billion in market value in less than an hour.

According to Hanergy TFP, the SFC has requested the audited accounts of parent company Hanergy Holding for 2011-2014 and details of the conditions of certain loans held by Li Hejun, chairman and CEO of Hanergy Holding.

The SFC on Wednesday directed Hanergy Thin Film-which has been the subject of intense scrutiny by analysts and short sellers who questioned its high valuation-to keep trading of its shares suspended.

Starting early this year, Hanergy’s shares surged more than 310 percent, giving the company the biggest market capitalization among thin-film solar power companies worldwide.

The regulator told the city’s stock exchange on July 15 that trading in Hanergy’s shares should remain halted. His fortune, which includes 31.25 billion Hanergy shares, was estimated by the monthly magazine Hurun Report at 165 billion yuan in February. Hanergy Thin Film said yesterday it believed the drop was the result of speculation about the status of orders for its equipment, which it clarified in yesterday’s statement. So far, the SFC has not accused the firm or its directors “of any wrongdoing or impropriety”, according to the statement.

The SFC announced an investigation into Hanergy on May 28.

Hanergy said the documents are the parent company’s private financial information and Li’s personal affairs.

However, Hanergy Thin Film said the SFC considered the company’s explanations and proposals to be inadequate.