Bao Fan, who is also the bank’s chief executive, is a major figure in China’s tech industry and has played a key role in the emergence of various domestic internet startups.
China Renaissance said in a statement to the Hong Kong Stock Exchange on Thursday that “the company has not been able to contact Mr. Bao” but did not provide further details.
The company’s stock price fell by 50% at some point after the announcement, then by about 30% again.
The 52-year-old trading expert has been unavailable for two days as of Thursday evening, according to financial news outlet Caixin.
China Renaissance was not immediately available for comment after being contacted by AFP.
Bao’s disappearance is now raising concerns over a possible renewed crackdown on China’s finance industry as President Xi Jinping persists in his long-standing crusade against corruption.
Willer Chen, senior analyst at Forsyth Barr Asia, told Bloomberg that the executive’s continued absence “could be a long-term overhang on the stock, given Bao is the key man for the company”.
Wang Wenbin, spokesman for China’s foreign ministry said he was “not aware of the relevant information” when asked about Bao’s disappearance.
“But I can tell you that China is a country under the rule of law,” he said.
“The Chinese government protects the legitimate rights of its citizens in accordance with the law.
China Renaissance has grown into a global financial institution with over 700 employees and offices in Beijing, Shanghai, Hong Kong, Singapore and New York.
Founded in 2005, the group has overseen the IPOs of several domestic Internet giants, including leading e-commerce company JD.com.
In 2015, Bao also facilitated a merger between major taxi company Didi and major competitor Kuaidi Dache.
The China Renaissance case is reminiscent of a series of investigations into China’s major financiers in recent years.
Chinese-Canadian businessman Xiao Jianhua was arrested by mainland authorities in 2017 and sentenced to 13 years in prison for corruption last August.
The billionaire known for his close ties to the Chinese Communist Party’s top leadership was reportedly kidnapped from a hotel room in Hong Kong by plainclothes police in Beijing.
At the time of his arrest, Xiao was one of the wealthiest men in China, with his fortune estimated at $6 billion.
According to Caixin, China Renaissance chairman Kong Lin was detained in September last year when authorities began investigating his work in the financial leasing sector of state-owned bank ICBC.
Originally published at https://businessdor.com on February 17, 2023.
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