Hong Kong
CNN
 —Â
China Renaissance, a prominent player in China’s technology sector, has announced the suspension of share trading and a delay in the release of its annual financial outcomes due to the unavailability of its founder.
Since mid-February, Bao Fan, aged 52 and the creator of this boutique investment bank back in 2005, has been unreachable, resulting in a significant drop in China Renaissance’s stock value, plummeting by as much as 50%.
In late February, China Renaissance disclosed that Bao was under investigation but did not provide further specifics, mentioning only his cooperation with relevant authorities in the ongoing inquiry.
There were reports in the Chinese media indicating Bao’s possible involvement in an investigation related to a past executive of China Renaissance.
China Renaissance stated in a recent filing that due to Bao’s absence, auditors were unable to complete their tasks, leading to a delay in finalizing the audit report for 2022 and meeting the April 30 deadline for submission of its annual report as per Hong Kong’s listing rules.
Consequently, trading of the company’s shares has been suspended starting from Monday onwards.
Bao Fan is renowned as a seasoned dealmaker with close ties to leading technology firms in China. He played a key role in facilitating the merger of Meituan and Dianping, two major food delivery services in China, back in 2015, resulting in the creation of a ubiquitous “super app” platform in the country.
Furthermore, his team has made investments in Chinese electric vehicle manufacturers Nio and Li Auto, as well as facilitating secondary listings of tech giants Baidu and JD.com in Hong Kong.
A recent investigation by China’s anti-graft authority on Liu Liange, the former party secretary and chairman of Bank of China, has underscored the intensified scrutiny on senior financial figures as part of a broader financial cleanup effort initiated by President Xi Jinping.
Wang Bin, the former party chief and chairman of China Life Insurance, faced charges earlier this year related to bribery and concealment of funds overseas, marking another high-profile case in the ongoing crackdown on financial misconduct.
— Michelle Toh contributed to this report.
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FAQ
1. Why has China Renaissance suspended trading and delayed its annual results?
China Renaissance has suspended trading and postponed the release of its annual financial results due to the unavailability of its founder, Bao Fan, who has been unreachable since mid-February.
2. What role did Bao Fan play in China Renaissance?
Bao Fan, the founder of China Renaissance, is a renowned dealmaker known for his involvement in facilitating key mergers and investments in top technology companies in China.
3. What are the reasons behind the delays in China Renaissance’s audit report?
The delays in finalizing China Renaissance’s audit report for 2022 were due to auditors being unable to complete their tasks in the absence of Bao Fan, as mentioned in the company’s filing.
4. What recent investigations have taken place in China’s financial sector?
Recent investigations in China’s financial sector include the scrutiny on senior figures such as Liu Liange, the former chairman of Bank of China, and Wang Bin, former chairman of China Life Insurance, on charges related to financial misconduct.
5. How has China’s anti-graft authority responded to these cases?
China’s anti-graft authority has heightened its focus on combating financial improprieties, with President Xi Jinping leading a broader cleanup effort that includes investigations into high-profile financial executives.
