Hong Kong’s securities regulator has confirmed it is investigating Hanergy Thin Film Power Group Ltd. (00566.HK) for suspected stock price manipulation, the Hong Kong Economic Journal reported Friday.
“A formal investigation into the affairs of Hanergy Thin Film Power Group Ltd. has been active and is continuing,” the Securities and Futures Commission (SFC) said in a statement.
It is the first time in almost six years the SFC has publicly announced an ongoing investigation.
The statement came after the solar panel maker denied it was the subject of any inquiry.
Chairman Li Hejun, China’s richest man, told state news agency Xinhua he was not aware of any such move.
Earlier, Reuters reported that regulators were looking into suspected stock price manipulation.
Chief executive Frank Dai Mingfang and executive director Eddie Lam refused to comment when contacted by HKEJ.
The stock has been suspended since last week when it lost half of its market value in a matter of minutes.
In 2009, the SFC publicly responded to incidents involving CITIC Ltd. (00267.HK), formerly known as CITIC Pacific Ltd., and HSBC Holdings Plc. (00005.HK).
SFC’s has a strict disclosure policy regarding investigations.
Consent from at least two executive directors is required for any ongoing probe to be made public.
The public investigation into Hanergy could mean a longer trading halt for the stock, analysts said.
Translation by Vey Wong
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