The head-scratching over Hanergy Thin Film Power Group’s stratospheric performance on the Honk Kong Stock Exchange is intensifying following a sharp analysis by the Financial Times of aberrant patterns in the trading of the companys shares.
In an article published Tuesday, the FT found that over the past two years, from the beginning of 2013 until February 2015, HTF stock consistently surged in the late afternoon, about 10 minutes before end of trading.
The FT showed its findings to a number of market experts, including Rajesh Aggarwal, professor of finance at Northeastern University in Boston. Aggarwal, who specializes in stock market manipulation cases, said such price increases in the last 10 minutes of trading was "extremely unlikely to have occurred randomly," adding that the pattern was consistent with systematic manipulation of the stock price over the two-year period.
HTF is the publicly traded unit of Hanergy Group and is 73% owned by Hanergy Chairman Li Hejun — China’s richest man. With a market capitalization of $36 billion, HTF’s value is higher than SunEdison and First Solar combined and also greater than that of Tesla — and that despite the fact that Bloomberg Clean Energy Finance (BNEF) has described the company’s thin film technologies as being "unproven in large-scale commercial production."
The FT previously examined HTF in an effort to explain its soaring share price but found nothing to explain its soaring stock, noting that it relies heavily on sales to its parent group.