Li Hejun, the solar tycoon and controlling shareholder in Hanergy Thin Film Power Group, took a US$200m loan pledging millions of shares in the Hong Kong listed company as collateral just before its share price crashed last week, dethroning him as China’s richest man.
The loan is the latest in a series of corporate loans involving British Virgin Island entities owned by HTF’s parent Hanergy Group, a Financial Times investigation has found. Through its BVI transactions, Hanergy pledged billions of shares in HTF — the world’s largest solar company — as the stock soared.
The Hanergy companies have come under intense scrutiny as HTF grew at breakneck speed in recent months, propelling its market value to at least five times its nearest competitor, First Solar of the US. Until last week, HTF was valued at more than Tesla and Twitter.