The encyclopedia · Finance & Accounting · Financial decision · 2015–2019
Hanergy lost $24 billion in 24 minutes — the biggest one-day crash in solar history
Hanergy's stock crashed 47% in 24 minutes, wiping out $24 billion. The SFC suspended trading, and the company was delisted four years later.
Hanergy Holding Group · Hanergy Thin Film Power · 2015-05-19
What happened
Hanergy was founded by Li Hejun in 1989 in Beijing as an investment company, shifting focus to thin-film solar technology in 2009. It grew rapidly through acquisitions including Solibro, MiaSolé, Global Solar Energy, and Alta Devices between 2012 and 2014, becoming a major player in the solar industry. Li Hejun became one of China's richest people, briefly ranking as the country's wealthiest man in 2015 with a net worth exceeding $30 billion.
On May 19, 2015, Hanergy Thin Film Power shares crashed 47% in just 24 minutes on the Hong Kong Stock Exchange, wiping out approximately $24 billion in market value. The crash was triggered by concerns over related-party transactions between the listed thin-film subsidiary and the private Hanergy Holding Group. The stock was suspended at the exchange's request.
The Securities and Futures Commission (SFC) launched an investigation on May 28, 2015, and on July 15, 2015, ordered the suspension of all Hanergy Thin Film Power shares. Trading remained suspended for four years. IKEA ended its solar distribution partnership with Hanergy in November 2015. Subsidiaries including Solibro Hi-Tech GmbH filed for insolvency in 2019 and 2020.
On June 11, 2019, Hanergy Thin Film Power was delisted from the Hong Kong Stock Exchange. Li Hejun resigned as chairman in April 2019, transferring his shares to his sisters. The company's attempt to privatize and relist in mainland China did not succeed. The $24 billion crash remains one of the largest single-day market value destructions in Chinese corporate history.
Why it happened
- Concerns over related-party transactions between the listed thin-film subsidiary and the private parent company triggered a panic sell-off that wiped out $24 billion in 24 minutes
- The SFC investigation and suspension prevented Hanergy from trading for four years, making it impossible to raise capital or restore investor confidence
- Rapid acquisitions of four thin-film solar companies between 2012 and 2014 created a complex corporate structure that regulators and investors could not verify
The lesson
Hanergy's stock crashed 47%, wiping out $24B. The SFC suspended trading and it was delisted four years later. A firm that grows faster than its finances can be verified is a house of cards.
Aftermath
Hanergy Thin Film Power was delisted from the Hong Kong Stock Exchange on June 11, 2019, after a four-year suspension. Li Hejun resigned as chairman in April 2019. Subsidiaries Solibro Hi-Tech GmbH filed for insolvency in January 2020, and Alta Devices laid off 250 employees without notice in December 2019. IKEA ended its solar distribution partnership with Hanergy in November 2015. The company remains in private ownership but its thin-film solar ambitions were never realized at the scale envisioned.
Sources
- Wikipedia — Hanergy (founded 1989 by Li Hejun, stock crashed 47% on May 19 2015 wiping out $24B, SFC investigation, delisted June 2019)
- Forbes — Hanergy Thin Film Shares Suspended After Crashing By 47% (May 2015, the crash day)
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