Two of the Hong Kong firms that had an as-yet-unexplained collapse of their share prices had business links, it was revealed last night.
Goldin, a conglomorate dealing in horse breeding, wine and finance had HK$16bn (£1.31bn) wiped off its value when shares sunk yesterday.
Subsidiaries Goldin Financial closed 43 per cent down and Goldin Properties 41 per cent down – in early trade they fell by over 60 per cent.
It followed Chinese firm Hanergy Thin Film slumping 47 per cent on Wednesday – before trading in the stock was suspended. It remains so.
Regulatory filings reviewed by Reuters last night showed solar panel maker Hanergy hired Goldin for financial advisory services, as recently as February when Goldin advised on a deal to supply solar panels to Hanergy’s owner, Hanergy Holdings, effectively making the parent its main source of revenue.
Yesterday, Hanergy Thin Film and both Goldin firms said they were not aware of any reason for the plummet in their respective share prices.
Both firms have had recent issues with Hong Kong’s Securities and Futures Commission with traders warned off Goldfin Financial shares, due to concentrated ownership, while Reuters reported yesterday Hanergy was being probed by the watchdog for alleged market manipulation.