THE Hong Kong stock exchange has asked Hanergy Thin Film Power Group (HTF) to hand over its parent company’s accounts before it will let the suspended stock trade again, but HTF is resisting the request, sources said.

    Two sources familiar with the matter said HTF is studying a proposal that as an alternative to disclosing the parent company accounts to Hong Kong Exchanges and Clearing Ltd. (HKEx), HTF could buy parts of its parent, Hanergy Holding.

    Hanergy Holding, which buys solar panel making machines from HTF and then makes solar panels for sale to third parties, accounted for two-thirds of HTF’s sales last year.

    Analysts say that makes HTF overly dependent on group sales and since unlisted Hanergy Holding doesn’t publish accounts, it is impossible to know whether there is independent demand for the end product.

    The proposal from HTF would bring the entire supply chain and ultimate sale of solar panels into its own books, the sources said.

    “This plan is being offered as a solution and the company will proceed with the purchase if HKEx approves it. This will resolve the problem of [connected transactions],” one of the sources said.

    Shares in HTF have been suspended from trading since May 20, when they crashed 47 percent within an hour, having leaped 600 percent in the previous eight months to US$40 billion, making founder Li Hejun China’s richest man. (SD-Agencies)