THE chairman of Hanergy Thin Film Solar Group Ltd., which saw its shares tumble nearly 50 percent Wednesday before trading was halted, had sold some shares before the plunge, Hong Kong stock exchange filings showed.

    Chairman and founder Li Hejun of the Chinese solar company had increased his short positions in the share to 7.71 percent of the total issued share capital from 5.81 percent previously by selling 795 million shares, according to stock exchange filings dated May 18.

    At the same time, he bought 26 million of shares taking his net position in the Hong Kong-listed unit to more than 80 percent, according to the filings.

    No explanation was given for the series of transactions in the filings.

    Li is the biggest shareholder of the Hong Kong-listed solar equipment maker. The stock fell 47 percent Wednesday before trading was halted, wiping off US$19 billion in market value. The company hasn’t released any comment on the trigger for the move.

    Li’s absence from the annual general meeting in Hong Kong had sparked further concern in the market already worried about the share plunge. The drop prompted the company to suspend trade in its stock.

    Li’s added to his short position at the same time as professional short sellers were closing out their holding. Wagers against Hanergy fell to 3.1 percent of its outstanding shares May 18, the lowest level since December 2013, before the stock plunge.

    Previously, the chairman had denied that Hanergy is a speculative investment and the company rejected suggestions in the past that it was manipulating the shares. (SD-Agencies)