Hanergy mulls challenge to SFC trading ban

Li Hejun, Chairman of Hanergy Holding Group
ChinaFotoPress | Getty Images
Li Hejun, Chairman of Hanergy Holding Group

Hanergy Thin Film Power said it may launch a judicial challenge to a decision by the Securities and Futures Commission (SFC) to suspend trading in its shares, saying the halt was not in the interest of shareholders or investors.

The Hong Kong exchange said earlier this week it had been directed by the SFC to extend a nearly two-month share trading suspension on Hanergy Thin Film Power, a mainland Chinese solar technology company which is being investigated by the watchdog after its shares plummeted in May.

In a filing to the Hong Kong bourse late on Thursday, Hanergy said SFC had argued the company had not been able to keep the market "properly informed" as it failed to provide the securities watchdog with documents relating to its controlling shareholder Hanergy Holding.

The Hong Kong-listed company said the documents were not in its possession, and it considered the SFC's direction to be "unfair and unreasonable".

Hanergy's management had hoped share trading could be resumed and has been in talks with the exchange, according to a person familiar with the matter. Reuters reported on June 24 that the HKEx had asked Hanergy to provide its unlisted Chinese parent company's accounts before permitting a resumption, a request turned down by Hanergy.

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"The group has and will continue to use its best endeavours to address the concerns of the SFC and will seek to resume trading of its shares as soon as possible," chairman Li Hejun said in the statement, adding Hanergy is operating as normal.

The company had notified the SFC that it intended to make representations to the board of directors of the SFC to seek to resume trading as soon as possible.

"If necessary, the company intends to challenge the SFC's decision judicially," Li said.