This article only represents the author's own views.
In the complex tapestry that is China’s vast private equity sector, even the most skilled weaver can occasionally miss a thread. That’s what happened with Hillhouse Capital, a Chinese private equity firm now repositioning itself as a more global fund, which received a regulatory rap on the knuckles related to its investment in solar company Longi Green Energy.
Hillhouse recently bought back shares in Longi Green Energy Technology Co. Ltd. (601012.SH), raising its previous 4.85% holding to 5%, according to a Shanghai Stock Exchange filing by Longi last Friday. Hillhouse’s move was in response to accusations by the China Securities Regulatory Commission (CSRC) last November that it “indirectly reduced” its holdings in Longi without making proper disclosure.