This is becoming awkward. The $19bn decline in the value of Hanergy shares on Wednesday was striking — but neither shocking nor, on its face, an indication of a wider problem in the Hong Kong market. The shares’ bizarre valuation and, ah, unique trading patterns had long been scrutinised. Good clean fun, then (except for the saps holding solar energy ETFs that own Hanergy — the Guggenheim Solar ETF was off 8 per cent on Wednesday).
Then Goldin Financial joined the act. The wine merchant and debt factoring company (Why has no one thought of that combination before? It’s like fish and chips.) fell by two-fifths yesterday, sending $12bn off to money heaven.
Two multibillion blow-ups in two days. A regulator should do something, surely? Are new rules needed?