Shares of China Renaissance fall after 17-month suspension, detention of ex-chairman by Reuters

HONG KONG (Reuters) – Shares in boutique investment bank China Renaissance fell as much as 72 percent to a record low on Monday as they resumed trading 17 months after being suspended during a probe involving then chairman and CEO Bao Fan.

Trading was suspended on 3 April 2023 due to a delay in the release of 2022 results after mainland Chinese authorities requested Bao’s cooperation in an investigation.

The star dealmaker, who founded China Renaissance in 2005, has not been seen in public since before the suspension. A Chinese financial publication reported last May that he had been detained by disciplinary and supervisory officials. Authorities have so far offered no explanation for his absence.

Bao is one of several high-ranking executives in China’s financial industry who have disappeared without explanation in recent years amid a sweeping anti-corruption campaign led by President Xi Jinping.

China Renaissance, which appointed Xie Yi Jing to replace Bao as chairman and CEO this year, released its long-awaited results last week, allowing it to resume trading.

The investment bank last week posted an attributable loss of 471.9 million yuan ($66.55 million) for 2023 and a loss of 73.8 million yuan for the six months ended June 30.