- Chinese investment bank China Renaissance said earlier this month it could not reach its founder and controlling shareholder Bao Fan.
- The company said Sunday it learned Bao was cooperating with a government investigation.
- Business operations remain normal, the company said.
China Renaissance said this month it was unable to contact its founder and CEO Bao Fan. This picture is from 2016.
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BEIJING – Missing Chinese investment banker Bao Fan is cooperating with a state investigation, his firm China Renaissance said in a filing filed Sunday.
The company’s Hong Kong-listed shares have fallen 29% since the company said on February 16 it was unable to reach Bao. Among other things, he is the majority shareholder, chief executive officer and founder of China Renaissance.
“The board is aware that Mr. Bao is currently collaborating with an investigation being conducted by certain authorities in the People’s Republic of China,” China Renaissance said in a filing with the Hong Kong Stock Exchange on Sunday.
In both filings this month, China Renaissance said its business remained normal.
Its shares hit a record low of HK$5 (64 cents) on Feb. 17, but have since recovered slightly.
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China Renaissance shares 12-month performance.
Earlier this month, Chinese financial news agency Caixin pointed out that Bao’s disappearance followed investigations into another China Renaissance executive, Cong Lin.
Cong was also the chairman of the company’s subsidiary, Huajing Securities.
The Shanghai office of the China Securities Regulatory Commission said in September that Huajing had violated securities law requirements related to corporate governance and asked Cong to comply with an investigation.
China Renaissance’s filings on Bao made no mention of this investigation, and a representative provided no additional information when contacted.