Hanergy (0566)

[theasiareport]

http://brontecapital.blogspot.co.uk/2015...doubt.html

Site visit to Hanergy. Empty factories and parking lots. Sound familiar?

[soros]

aastocks website has posted news that SFC are investigating .

http://www.aastocks.com/en/stocks/news/a...W.671524/3

[greengiraffe]

Cult blogger Hempton says Hanergy barely exists

Vesna Poljak
520 words
26 May 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.

Hedge fund manager John Hempton has aired his experience of looking into Hanergy, the Hong Kong-listed solar company whose shares plunged in unexplained fashion last week. The company is reportedly the target of an investigation into market manipulation.

Mr Hempton, who authors the cult markets blog Bronte Capital as well as managing money, published pictures on Friday of his visit to a Hanergy site in China around six weeks ago. The images show a largely idle factory where the main activity was gardening.

Since the shares were suspended, it has emerged that the chairman of Hanergy Thin Film Solar Group, Li Hejun, had increased short positions in the stock, betting the shares would fall.

"I went to visit Hanergy's main factory in China about six weeks ago. It was almost entirely silent. There was essentially no production of solar cells at all and the accounts that suggest significant production and sales are entirely fraudulent," Mr Hempton wrote in his latest post.

"There has been much press that compares Hanergy to other solar companies and suggests there may be disruptions in the market for panels. Garbage, I say. The right comparison is Sino-Forest or Longtop Financial Technologies," Mr Hempton wrote, referring to two other notable targets of alleged fraud by Chinese companies. "Hanergy barely existed."

Reuters has reported that Hong Kong's Securities and Futures Commission is looking into the solar equipment company. The Financial Times has revealed that Mr Li secured a $US200 million ($255 million) loan by placing his stake as collateral two days before the stock collapsed, after combing through offshore filings and related party transactions.

Hanergy shares have been on a remarkable ride since late last year, affirming the wealth of its founder-chairman as one of China's richest men, and peaking at a market value of $US48 billion before shedding almost half of its worth within an hour last Wednesday. But questions around the integrity of its balance sheet, strategy and forecasts predated last week's plunge to $US21 billion.

Hanergy has also been the focus of short-selling interest but in spite of this, its stock had maintained a sharp upwards trajectory.

Mr Hempton formerly worked at Platinum Asset Management, the Sydney-based international equities manager. His blog is followed for its unique and sometimes challenging views on stocks and gained a strong following after linking the United States political elite to an alleged Ponzi operator. After his visit to the Hanergy site in China, Mr Hempton disclosed that he did not take a short position in the stock, judging the risk of becoming squeezed if the shares rallied too high.

Morgan Stanley said in a report on Friday that some Hong Kong-listed stocks "experienced more volatility as money flows from mainland China gathered steam". Shares can be traded between Hong Kong and mainland China through the hugely popular Shanghai-Hong Kong Stock Connect, which opened last year.

The broker also pointed to share price collapses of similar magnitude for Goldin Financial and Goldin Properties, a broker and developer.


Fairfax Media Management Pty Limited

Document AFNR000020150525eb5q00029

[hh488]

"Since the shares were suspended, it has emerged that the chairman of Hanergy Thin Film Solar Group, Li Hejun, had increased short positions in the stock, betting the shares would fall.'' ...unquoted

If the shares are currently suspended, how will he able to buy back on time. Then this shorting actually back-fire on him?

[kikababoo]

"Since the shares were suspended, it has emerged that the chairman of Hanergy Thin Film Solar Group, Li Hejun, had increased short positions in the stock, betting the shares would fall.'' ...unquoted

If the shares are currently suspended, how will he able to buy back on time. Then this shorting actually back-fire on him?

im not sure about the mechanics, but since he's fundamentally long the company (rather than doing naked shortselling), don't think he will have an issue in terms of delivering the stocks?

[CityFarmer]

It seems more "trouble" pending for Hanergy...

(not vested)

Hong Kong regulator orders suspension of all Hanergy trading
15 Jul 2015 19:05
[HONG KONG] Hong Kong's stock watchdog took the rare step of saying trading in Hanergy Thin Film Power Group Ltd shares can't resume without its approval, raising the prospect they'll remain suspended for the foreseeable future.

The Securities & Futures Commission's suspension falls under a rule allowing it to call for a halt when it believes that misleading, false or incomplete information has been included in documents and statements. Regulators were already investigating Hong Kong-listed Hanergy, which hasn't traded since it requested a halt on May 20 after its shares lost almost half their value in less than half an hour
...
Source: Business Times Breaking News

[weijian]

While on volume 5 of Prof Mak's CG compilation, came across Hanergy.
As always, retrospectively reading these case studies (and been late), one would have the privilege to update the epilogue.

Some noticeable epilogues that i thought would be worth sharing:

(1) A directorship ban on HK companies (listed/unlisted) for Li He jun and some of the directors.

Hanergy founder gets eight-year ban from Hong Kong finance authorities
https://www.pv-tech.org/news/hanergy-fou...uthorities

(2) I thought this portion was really informative for me. If HK SFC is a toothless lion against mainland firms, what more any others beyond the jurisdication?

The SFC sought assistance from the China Securities Regulatory Commission, according to sources. The latter’s intervention was, however, in vain. Hostility of regional banks towards foreign regulators and insubordination to the domestic one is no news to any market veteran. They are more loyal to their key borrowers – whose survival matters to their bad-debt levels – than to a mainland securities regulator who has no jurisdiction over them. Meanwhile, a probe into the peculiar trading of Hanergy also hit a wall, given that a significant part of the orders originated from mainland China.

Civil action against Hanergy shows SFC is just a chained lion
https://www.scmp.com/business/article/20...ained-lion

(3) Probably Hanergy does have a legit business. But having a legit business is just the "B" part of specuvestor's ABS framework.

Sun to Shine Again on Embattled Hanergy?
https://www.caixinglobal.com/2018-04-06/...31211.html