Hong Kong based solar panel manufacturer China Solar Energy Holdings Ltd reported that its chairman and two other directors have been arrested by Chinese authorities. The said arrests were based on allegations of fraud perpetrated on assets of a mainland located unit.
The three were Chairman Yeung Ngo, Yang Yuchun and non-executive director Hao Guojun were arrested and have been detained since August 26. According to the company's legal advisers, the three could not be contacted and the same was reported to the regulatory authorities. As of the moment, the company is assessing the impact of the investigation on the company's overall financial performance and its share values, as trading was halted last August 16 and would remain so, according to the statement.
China Solar Energy fell 11% to just HKD0.18 per share last August 16 before the company requested asked for trading suspension until such time that an announcement as to the arrests were made. The company is currently valued at HKD277 million or USD36 million.
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