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…
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.
And another billionaire was promptly wiped out: Pan Sutong started the day engorged with wealth after his companies Goldin Financial and Goldin Properties had risen 300% this year. By the close he had lost 60% of his wealth!
What goes up… crashes to floor in a wealth-destroying frenzy…
Fundamental Analysis is must before investing
INVESTING IN CONTROLLED ECONOMY IS RISKY
CHINA STORY: As business professionals, many of us have felt for quite some time that what is seen to the outside world, including the stock market contains only a part of the over all economic chinese baggage – the world is not allowed to fully look deep into chinese systems and we can only see controlled parts. The picture may PERHAPS be much different if the present economic condition is spread over entire Chinese scenerio -the visible part (e.g. big and humming business pieces ) as well as the invisible hinterland (peasantry included ). I hane NOT written this with negative thoughts towards China but merely as an analysis
Thanks for sharing your analysis
I am hugely worried about our market when there is a debacle in Chinese market-which is a very dangerous one to the world investing community and the potential damage it can cause to the world market is enormous- devastating.
The entire chinese market has gone parabolic, it is a disaster waiting to happen. These accidents will happen all the more.
addition to the previous comment the only thing in favour of all these chinese stock is chinas high growth rate which are held in doubt by lot of financial analyst god save us all when the chinese market starts melting down
I have also felt that the chinese stock market is nothing but a casino no proper disclosures accounting systems all made up my personally view is even alibaba which is so richly valued in US markets is nothing but a hyped up story one need to just look at their share holding patterns nobody can make out what is what wouldnt be suprised if alibaba went the way of these 2 companies or like satyam