China arrests top officers of failed solar energy firm

Detained on allegations of fraud.

The chairman and two directors of China Solar Energy Holdings Ltd. have been detained by Chinese authorities. Chairman Yeung Ngo, Yang Yuchun and non-executive director Hao Guojun were arrested and have been held since Aug. 26.

The company said it has been unable to contact them since August and is assessing the impact of the investigation on its financial performance. It is a solar panel maker that lost 93% of its market value since 2007.

Media reports said the disappearance of China Solar Energy’s directors and the fraud probe underscore investor concern that the business environment on the mainland is opaque and prone to corruption.

The company is valued at HK$277 million, down from HK$3.7 billion at its 2007 peak. The shares will remain suspended, the company said.

China Solar Energy fell 11% to HK$0.18 on Aug. 16 before it asked for trading in the shares to be halted pending the release of an announcement about recent movement in the price.