Shares of China Renaissance company collapsed
Shares of the Chinese investment firm China Renaissance collapsed on the Hong Kong Stock Exchange after the company’s management said that it could not contact the founder, CEO and largest shareholder of the company Fan Bao.
At the beginning of the trading day, China Renaissance shares collapsed by 50%, from 10 to 5 Hong Kong dollars. Later, their price adjusted, and now they are trading around 7.2 Hong Kong dollars.
The report says that the company’s management has no information about whether Mr. Bao’s disappearance is related to his professional activities. The company itself temporarily came under the management of the executive committee.
China Renaissance has been behind several of China’s largest IT sector deals over the past decade. Thus, the investment firm advised Meituan and Dianping during their large-scale merger and further IPO of the combined company. In addition, China Renaissance was a consultant on the merger of Didi Taxi and Kuaidi Taxi, which resulted in Didi, and was an underwriter of the IPO of the taxi aggregator in the United States in June 2021.
The previous mysterious disappearances of the heads of large Chinese companies, perhaps the most notorious of which was the case of Guo Guangchang, the head of the country’s largest private conglomerate Fosun Group, were clarified quickly enough. Later they were found in a prison or a police station.
