HANNY Magnetics has found itself under the spotlight because of its haemorrhaging share price and growing uncertainty surrounding its financial position. After enjoying a relatively buoyant performance in the second half of last year, stock market investors have grown cautious towards the company, which made two major acquisitions last year, of Memorex and Memtek. The stock has underperformed the Hang Seng Index so far this year by 39 per cent, according to Bloomberg data, falling 61 per cent in price terms and 60 per cent when taking into account the dividend effect. The decline in the company's share price has been more noticeable recently, falling from an average of $1.93 four weeks ago to $1.88 three weeks ago and then to $1.73 on August 8. Yesterday, it was down 6.5 cents to $1.395, the seventh worst performer of the day. The stock is down more than 20 per cent from a month ago. The company said the fall in its share price might be the result of concern surrounding its debt. ''The borrowings of the company increased significantly to finance acquisitions of certain parts of the business of Memtek and Memorex Computer Supplies in November and December 1993 respectively, and speculation [has arisen] that these two acquisitions may be a financial burden to the company in the short term.'' It said there might be misconceptions about the financing of the deals. It said a US$35 million syndicated loan was part of a package to repay a bridging loan in the acquisition, and this had thereby released all securities and pledge of assets in the company and its subsidiaries created under the bridge loan. Meanwhile, H shares continued to fall in relatively heavy volume. Maanshan Iron & Steel fell six cents to $2.69. It was the fifth most active stock of the day by share volume. Qingling Motors fell eight cents to $2.53 and was the sixth most active stock.