Turns out the former Chinese billionaire whose solar company just imploded was shorting his own stock

Hanergy Thin Solar CEO Li HejunAPLi Hejun, chairman and CEO of Hanergy Group, attends a press conference held at the company’s headquarters in Beijing, China, Wednesday, Jan. 9, 2013.

It turns out the man presiding over the implosion of one of China’s stock market darlings was on the right side of the trade.

Li Hejun, the Chairman of Hanergy Thin Film Solar Group Ltd, added to a short position in his own company’s stock days before it collapsed, Bloomberg reports.

“Li bought 26.4 million Hanergy additional shares at an average of HK$7.28 each on May 18, according to two separate filings to Hong Kong Exchange on Friday. He also increased his short position to 7.71 per cent of Hanergy’s issued share capital from 5.81 per cent on the same day,” said the report.

The fall of Hanergy was the talk of China this week. The $US39 billion solar company’s shares rose 500% over the past year then were halted suddenly on Wednesday before they plummeted.

The only way to describe the evaporation of such wealth is to say that it was breathtaking. According to reports Li lost $US15 billion in one hour when shares fell 47%. Shares were suspended with no explanation. Also, notably, Li was absent from a board meeting held earlier that day.

There has been suspicious movement in the stock before this week, and Li has never explained his short position in his own company.

What we do know is that:

None of this looks good for Li Hejun, especially since it seems like he saw this coming based on his own short position.

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