After Hanergy Thin Solar's shares got smoked there's speculation it has defaulted on its debts

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Earlier this week markets watched in awe as shares in Hong Kong-listed Hanergy Thin Solar plummeted nearly 50% in minutes.

The decline, thought to have cost company chairman and majority owner Li Hejung, around $US15 billion in paper wealth, occurred on the day of the companies annual general meeting, which Li failed to attend, and on the back of absolutely no news from or relating to the company.

Li Hejun. Photo: ChinaFotoPress / Getty Images

Two days after the dramatic plunge, the rumours as to what sparked the selloff are starting to emerge.

According to the Caixin online newspaper Hanergy Holding Group, Hanergy Thin Solar’s parent company, used shares in the entity to take out bank loans which, according to sources close to the company, it has since failed to repay.

The share sales escalated after debtors made little progress in negotiations with the company over the defaults.

As yet, there has been no official comment made by the company, the Hong Kong Stock Exchange or securities regulator, the Securities and Futures Commission.

Midway through Friday’s session shares in Hanergy Thin Solar remain suspended.

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