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China's Richest Man Sees Half His Net Worth Wiped Out In Seconds After Bubble Stock Instacrash
Li Hejun began the day as either China’s second-richest man according to Forbes, or richest, according to the Hurun Report (China's version of the Forbes rich list) and Le Figaro, with a fortune worth more than $30 billion. By 11am, his net worth was amazingly cut by half, and he was almost $14 billion "poorer" as shares in Li’s flagship Hanergy Thin Film plunged by 47% in Hong Kong before trading was suspended - due to Li's absence at the company's annual meeting.
While four months of supercharged stock gains were eviscerated in minutes, it was not a surprise to everyone, as one analysts called Hanergy "a disaster waiting to happen," noting that the company is working with “unproven” technology and has disclosed few details about the work that underpins its valuation.
It was all going so well, and then...
As Forbes reports, shares in Li’s flagship Hanergy Thin Film plunged by 47% in Hong Kong before trading was suspended at the request of the Hong Kong Stock Exchange...
Li’s absence at the company’s annual meeting in the former British colony this morning was behind the decline in prices, according to some reports, but there was no reason given by the company for the drop. Hanergy said in a statement it would make an announcement containing inside information later today.
Li, Hanergy’s chairman, owns more than half of Hanergy Thin Film. Li has been outspoken in defending the company, saying BU. But as Bloomberg notes, questions have been mounting for a while...
Hanergy uses a niche technology in the photovoltaic industry, where more than three quarters of all panels are based on solar-grade silicon. Thin film cells are more flexible but less efficient than crystalline silicon-based panels.
Prior to Wednesday’s plunge, Hanergy Thin Film’s market value had at one point risen to more then HK$300 billion. That’s larger than Japan’s Sony Corp. and almost seven times the size of First Solar Inc., the biggest U.S. solar company.
...
“It’s an adjustment that the market has been waiting to happen, as Hanergy’s earnings and business performance didn’t support such a high stock price or valuation,” said Gong Siwen, Shanghai-based analyst at Northeast Securities Co.
The Chinese solar company was the subject in January of an investigation by the Financial Times newspaper, which questioned its “unconventional” accounting practices.
The stock “is a disaster waiting to happen,” Geo Securities Chief Executive Officer Francis Lun said today by phone.
Bloomberg New Energy Finance released a report in March saying Hanergy is working with “unproven” technology and has disclosed few details about the work that underpins its valuation.
In a six-page examination of the Hong Kong manufacturer’s operations, the London-based researcher said it’s been unable to find a detailed list of solar-power projects that would help explain why the company’s shares surged in the past year.
Like today’s abrupt dive, Hanergy’s stock rise of 500% in the past year has been surprising to many analysts who said it was long overvalued.
Welcome to the new 'fake it til you get busted' normal.
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He's got a few more billions to go.
Keep it going...
Confidence takes years to build but is lost instantly!
Ho Li Fuk... :D
At least he wasn't caught yawning...
...and it's gone!
The Bangcock Coke and Hooker Hangover
"Partying Like You're Goldman"tm
Party like you golman.
Ho Li Fuk!
Hahahahahahahahahaha!
Right, guys? Right??? Right..?
Hey, I'm NOT racist. I'm a liberal.
Sum Ting Wong?
Hahahahahahahahaha!!!
WHAT? I voted for Obama twice!
That is one expensive day off. lol
Hope she was worth it you Chinese Shyster!
pods
Can I get a mulligan here?
Since the go low ballists now have a flat earth (how ironic is that) we will see more and more and more of this.
Nothin new under the sun. A few million sheep just had their piggy bank raided.
Next...
Throwback, prophetic...
https://aadivaahan.wordpress.com/2012/11/18/ps-2-cognitive-dissonance-an...
How do you say, "BTFD!" in Chinese?
:)
Fuck buy dip.
No, actually, I wouldn't buy shares or short shares directly: IMHO, the best option is options -a slew of puts, deep out of the money short options on a range of Chinese tech and industry.
IF you had purchased a few thousand dollars in deep levered puts on this pig you might be shopping for learjets and castes this morning.
"Fuck buy dip"
Sounds like Yoda said it.
Gotta love paper wealth. This kind of example is how I explain Bill Gates type wealth, if its on paper it ain't real.....
To the credit of Buffet, he owns some real shit.
No, Uncle Warren owns Berkshire stock which owns real shit.....
21st Century New Age Meaning to : "No Tickie, No Laundry"
He's just not ambitious enough.
Musk still has lots to learn
" Too much ginseng make man crazy! "
~ Old Chinee Proverb
Oh no he ditn't...did you just start the Chinese 'names' joke?
I had a Chinese girlfriend a few years back, she was only 18.
Wei Tu Yung.
...although she wasn't a patch on the Mexican dwarf I dated.. Cuntzwaylow.
Ok...I'll stop now.
my chinese butler was named: FUK YU
He was out with Barry on the links!!
Anyone that knows anything about thin film solar knows every company involved in it is nothing but a scam ..... Solyndra anyone ?
Agreed. Show me a solar company that has a value based on revenue instead of "potential".
Hoe we fuk'd!....some folks
Poor bastard, how's he gonna live on only 15 billion?
LOL! Real wealth cannot be "wiped out" in half a second.
Humanity is most certainly devolving.
I was going to post something similar. So much "wealth" living off of eletronic investments that for now can be converted to cash. Wipe out (or severaly impair) those assets and the cash conversion is toast. When this happens, they are screwed. The cost to keep up the lifestyle is too massive.
However, the flipside of this is the explanation of why the Fed was so determined to bouy equities and real asset. Real estate is the collateral... the real wealth. Equities is the cash flow. Those in the "know" have been given a chance to jump ship at the expense of a middle-class wipe out.
Perhaps, but again, maintaining real estate has real input costs in terms of real resources, none of which can be pulled out of thin air.
One of the reasons it is destined to fail.
And I thought I having a bad day when I dropped my bottle of Jack Daniels
"Real wealth cannot be "wiped out" in half a second"
...Excepting when those very unfortunate boating accidents happen...
Take the money, keep the bullshit flowing and pray like hell you can come up with something shiny and new before you're found out. Hmmm where have we seen this before? iwatch anyone?
Take the money, keep the bullshit flowing and pray like hell you can come up with something shiny and new before you're found out. Hmmm where have we seen this before? iwatch anyone?
That's why he didn't show up. The alarm on his iWatch didn't go off because the 3 hour battery was dead. The world's first 14 billion dollar wristwatch.
15 billion lost because he forgot to set his alarm clock.
Wow.
You have to show up to win.
it was either the snooze or the AM/PM
iWatch bug?
http://cleantechnica.com/2014/05/09/silicon-thin-film-solar-going-nowher...
Harbinger of things to come...what a "humdinger" !
Yes indeed.
There is probably as much meat left on the bone to take another coupla bites...
That's what you get for gambling at the casino asshole.
Come again....
Next time he can double his money by buying the dip and then show up (laughing)
WWMD?
What Would Mao Do? Hmmmmmmmm ............
Pretty sure if we killed millions of people, they'd lock us up and throw away the key.
He probably had someone he knows well short the hell out of this a short time ago, knowing he would oversleep that day.
If it was a bank (or just about any US listed company) the stock would have tripled.
Nah, that's just your frustration coming out about (a) missing out on the last 6 years of the bull market, and (b) seeing the value of your gold halved.
Somewhat true. Also frustrating dealing with people whose IQs have been halved.
Looks like you just got TheFourthDouche-ing.
What sort of wannabe transvestite gives itself a name like the fourth stool? Maybe "I fist myself" was already taken.
Easy come , easy go.
He will probably double income in 3 days.
That silly goose!
he probably was short and just doubled his money
I have seen guys lose a couple of million on the Baccarat tables and yawn and tell wife 'lets go eat lunch''
But BILLIONS? Wow
You sure it was the wife?
So he goes to the Casino and puts 15 billion on BLACK at the wheel. Comes up black. He takes his chips and says ''see, no problem''
Mind you, with the remaining 16 billion, he should be doing alright.
Just shows to go ya...if you don't hold it, you don't own it.
This is the way it will end for the "market" too. One minute it will be there and then.... poof.... it's gone.
There it was, gone.
Jump oligarch jump if you're not dead already. This is a planet of flowers, fishyees, and coconut trees. It has been around for 4 or so billion years and financial perverts are not welcome. Go on get outta here, and take some of your buddies with you why don't you. The world needs another oligarch like it needs another dancer. Go on. Beat it.
THERES NO MORE WHERE THAT CAME FROM!
It was him who was selling ! ;)
Oh, I am really sorry.
Unless I'm reading way too much into this, I believe there's a bigger story here.
How unstable must a market be that if the chairman doesn't turn up to a meeting, panic ensues? And I don't mean a drop of 3, 5 or even 10%. But nearly 50%?!
This, I think, is the smoking gun we ZHers have been looking for. Even the people who are bullish on the stock market don't believe this bullshit. It's the equivalent of a car being broken into somewhere in your neighbourhood, then 5 minutes later, putting your house on the market. Either an overreaction or insider trading. No matter which one you pick, it's still an undesirable result...
The Chinese have strange ideas about stock valuation. Apparently, in China they actually think stock prices should be related to earnings and performance.
I don't feel ANYTHING from this article, I mean, c'mon whoever heard of this guy?
Anyone? Anyone? Bueller?
Thought not.
Now if it was '....wipes out 14 billion of Soros' wealth...' I'd be inviting you all to a party.
Will we see that day? Fuckin' 'ope so.
my heart bleeds...
He should have bought something solid like twitter.
Wait hold on just a minute, are you telling me that stocks can go down ? My real estate flipping seminar specifically taught me that assets only go up...
Now I'm just confused...
shocking, SHOCKING!
This happens to silver stackers all the time. We hardly notice.
We are on the silver Titanic.
He should have invested that money in Arcadia and San Merino real estate. You know, like the other Chinese "millionaires" do.
Bitchezzz.
All they have to do is show up.
He bought Beta Max when he should have gone VHS.
Que the violins.
https://www.youtube.com/watch?v=qi1npkqifnE
Saw my girlfriend from college last fall. She had more chins than you can find in a Chinese phone book!
so solly
When will people figure out that Facebook is over-valued?
Read more below. The company is also under ivestigation by the SFC for stock manipulation.
http://blogs.barrons.com/asiastocks/2015/05/19/is-hanergy-the-next-yingl...
Don't be silly, nobody manipulates stocks.
That happened to me once. Slept in, lost $14 billion. You don't want to go through that. Honestly it's better to be poor and not have to go through that stress.