China Renaissance stocks plunge more than 20 after founder Bao

China Renaissance stocks plunge more than 20% after founder Bao Fan goes missing

  • China Renaissance said it was “unable to contact Mr. Bao Fan,” according to a filing with the Hong Kong Stock Exchange late Thursday.
  • The Beijing-based investment bank is operating normally, the filing said.
  • Bao is the company’s majority shareholder, as well as Chairman, Executive Director and CEO.

Bao Fan, founder and chief executive officer of China Renaissance, speaks at a conference in California in 2016.

Bloomberg | Bloomberg | Getty Images

BEIJING — Prominent Chinese investment banker Bao Fan is missing, his firm China Renaissance Holdings said late Thursday.

China Renaissance said it was “unable to contact Mr. Bao Fan,” according to a filing with the Hong Kong Stock Exchange.

The Beijing-based fund manager and investment bank are operating normally, the filing said.

Bao is the company’s majority shareholder, as well as Chairman, Executive Director and CEO. He didn’t immediately respond when contacted by CNBC about the news.

Shares in China Renaissance plunged more than 20% in trading in Hong Kong on Friday.

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China Renaissance stock performance

Alibaba subsidiary Ant Group was one of three major investors in China Renaissance, leading to its own Hong Kong listing in 2018. In late 2020, Chinese authorities abruptly suspended Ant’s plans for a massive IPO.

China Renaissance has played an important role in China’s internet tech world over the past decade. The investment bank advised Meituan and Dianping on their massive merger and subsequent IPO in Hong Kong.

China Renaissance also advised on the merger that became Didi and was underwriter of the ride-hailing giant’s US IPO in June 2021.

Chinese authorities began tightening their scrutiny of foreign listings this summer.

Days after Didi’s IPO, authorities announced a review of the company’s cybersecurity and halted new user registrations. The company delisted later that year. Didi said last month it had received approval to start registering new users again.

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Despite greater caution about investing in China after Didi’s IPO, Huaxing Growth Capital announced in October 2021 that it had raised nearly $550 million in a fund deal from China Renaissance.

Chinese financial news agency Caixin pointed out that Bao’s disappearance followed the investigation into Cong Lin.

According to the Tianyancha business records database, Cong was the chairman of China Renaissance’s subsidiary Huajing Securities until earlier this month.

The Shanghai office of the China Securities Regulatory Commission said in September that Huajing had violated securities law requirements related to corporate governance and asked Cong to comply with an investigation.

China Renaissance’s Bao Fan filing made no mention of the investigation, and a representative provided no additional information when contacted.

The company’s official WeChat account includes this week’s and last month’s announcements with quotes from Bao. A post from early December shows Bao attending an event in Beijing recently.