China Renaissance's stock sat suspended for 17 months after its CEO went uncontactable

China Renaissance was the boutique investment bank that had arranged financing and IPOs for Meituan, Didi and much of China's tech-unicorn generation, built around founder and CEO Bao Fan's relationships with those startups. In February 2023, the company disclosed it had lost contact with Bao and could not confirm his whereabouts; he was reported to be cooperating with an investigation by Chinese authorities. With no reliable update to give investors, the company requested a trading halt. Shares last traded on March 31, 2023, and the suspension stretched to 17 months.

During the halt, the bank had to publish overdue audited results for both 2022 and 2023 before the exchange would let trading resume — a process that itself signalled how disrupted normal operations had become. When shares finally resumed trading on September 9, 2024, they fell as much as 73% before closing down 66% at HK$2.45, wiping out most of the value investors held when the stock froze.

The financial results filed during the blackout showed the damage: a net loss of 429.9 million yuan in 2022 that widened to 471.9 million yuan in 2023, a second straight unprofitable year, with first-half 2023 revenue down 39% year-on-year. Nearly a third of the Hong Kong staff were laid off or resigned as the deal pipeline dried up and clients that once relied on Bao's personal relationships took their mandates elsewhere.

Bao Fan resigned as chairman and CEO on February 2, 2024, citing health reasons and a wish to spend more time with family; the board thanked him for his contributions and said there was no disagreement over the departure. His wife, Hui Yin Ching, who with Bao held a 48.7% stake, was named a non-executive director.