Sunday, 21 June 2015

Hanergy report (2)

In addition to my last writing about this subject, Bloomberg published an article:

What You Need to Know About the Company That Lost Nearly $19 Billion in 24 Minutes

The article details what actions the Hong Kong Securities & Futures Commission can take, and how long things might take.

Hanergy Chairman Li is definitely one to follow, he seems to have a curious sense of humour.

First he told Xinhua News Agency in an interview days after the stock halt that reports of a regulatory probe were “purely rumor.” The SFC issued a statement about the probe after the Xinhua story ran.

Li also told Xinhua that the company was putting on extra shifts at its plants. “We’re in big production. It’s very, very, very good. Hanergy is in the best shape since it started,” he said.

I strongly doubt the above is based on any sense of realism. Investors in Hanergy should conservatively write off their full investment, an outcome better than that should be treated like winning the lottery.

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