How would you feel if you lost Sh 20,000 in a day? I would probably cry and go into a depression because it is alot of money and my day would be totally ruined.
Well how would you feel if you lost $14 Billion? The Chairman of Hong Kong-listed Hanergy Thin Film Power, a maker of equipment for the solar power industry, lost $14 billion in 30 minutes.
Li had become one of China’s richest men on paper after shares in his company nearly tripled in the first four months of the year, with a market capitalization of $40 billion at one stage.
But the company’s shares fell over 42% in the last half-hour of trading in Hong Kong Wednesday, before being suspended by the local market regulator.
The boom in Hanergy’s shares has raised eyebrows. Transparency about the company’s business practices is limited by the fact that most of its sales go to a single company–its parent, the privately-held Hanergy Group.
That has fostered suspicions–denied by the company–that it may be overstating its financial strength.
The collapse appeared to be triggered by Li’s failure to attend the company’s annual shareholder meeting.
In one of the more memorable corporate quotes of recent times, The Financial Times reported a company spokesman as saying that Li “had something to do” instead.