HONG KONG (Reuters) – Shares of small investment bank China Renaissance plunged as much as 72 percent to an all-time low on Monday when it resumed trading 17 months after being suspended during an investigation into then-chairman and chief executive Bao Fan.
Trading was suspended on April 3, 2023, due to a delay in publishing its 2022 results after Chinese authorities requested Bao’s cooperation in the investigation.
The star dealmaker, who founded China Renaissance in 2005, has not been seen in public since before his arrest. In May last year, a Chinese financial publication reported that he had been detained by disciplinary and supervisory officials. Authorities have yet to offer an explanation for his absence.
Bao is one of several senior executives in China’s finance sector who have disappeared in recent years without explanation amid a sweeping anti-corruption campaign led by President Xi Jinping.
China Renaissance, which appointed Shi Yijing to replace Bao as chairman and CEO this year, released its long-delayed earnings results last week, allowing it to resume trading.
The investment bank last week reported a write-off 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.