How a Chinese Businessman Lost Half of His Fortune in Half Hour
I know you think you’re having a bad day but just take a deep breath and think that plenty of people out there have it worse than you do.
One of these people is China’s former second richest man – 2nd richest up until last night – when in the last 30 minutes of trading the company stock price dropped by a massive 47%, triggering an emergency shutdown in trading.
Li Hejun is the chairman of Hanergy Thin Film Power Group Ltd (market cap 38.5 Billion), a company specializing in solar powered equipment, company which made him incredibly rich! His net worth – up until last night (14 Billion loss in his personal fortune according to TIME), – was estimated at around 30 Billion dollars.
Hanergy Thin Film Power, a Hong Kong-listed company, is the biggest player in the solar power space with a market value exceeding all other players in the area combined. Just for comparison, the largest solar company in the US, First Solar Inc., has a market value of only $5.6 Billion.
We’re still not sure what seemed to be the cause of the sudden drop!
Some consider it the burst of a bubble, New-York-Listed Yingli Green Energy Holding, Hannergy’s main competitor, declared in its annual report a 37% drop in share value and struggling to continue its expansion into the marketplace while others point at the lack of transparency regarding the firms financials.
The fact that Hanergy Thin Film Power’s main client is its parent company and the fact that Li Hejun himself decided not to attend the annual shareholder meeting, might just have triggered a market backlash.
Insiders are speculating that Hejun himself “had something to do with it“.
If we look at the bigger picture, we might just see a company that was massively overvalued in the first place and the market just regulating itself. The company saw massive growth in the last couple of years, fueled by the trading frenzy. Perceived as a unicorn in the trading space Hanergy stock price increased sixfold so far since the beginning of the year!
With stock prices fluctuating as we’re seeing right now Li Hejun might just see his fortune drop even more unless serious regulatory measures come into play.