China Solar director bailed

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In an update to the Hong Kong Stock Exchange today, China Solar says its non-executive director Hao Guojun – one of three company executives arrested in Dali, China in late August – was released on bail on October 26.

The former solar giant revealed on October 21 its chairman, Yeung Ngo, his son and executive director Yang Yuchun and Hao were arrested by the authorities in Dali on suspicion of involvement in the false reporting of registered capital relating to two subsidiaries of the Bermuda-registered parent company.

The China Solar board told the Hong Kong exchange it has seen documents confirming Hao was released on bail on Saturday but has still been unable to contact any of the trio for further details.

The allegations relate to the activities of the Dali subsidiary of China Solar, which was established in January 2008 but has never started operating and has paid none of the US$49,460,000 of registered capital required by the local authorities to be able to trade in the mainland, with the sum due since January 24, 2009.

A second mainland subsidiary, in Changzhou, has paid only $19,358,000 of $99,980,000 due since June 23, 2010.

The China Solar update confirmed trading in the company’s battered shares will continue to be suspended until further notice.