Renaissance shares tumble after its founder Bao Fan became ‘uncontactable’, sending a cloud over the deal maker behind Didi, Meituan and Kuaishou
- China Renaissance said that it had been ‘unable to contact’ its founder and chairman Bao Fan, a key figure in the fundraising and mergers of Didi, Meituan and Trip.com
- Shares of one of China’s largest private investment banks plunged as much as 50 per cent to an intraday low of HK$5, before clawing back some losses to close at HK$7.18
China Renaissance Holdings Limited’s shares plunged, after the investment bank and deal maker behind the initial public offerings (IPO) of Didi and Meituan said it could not reach its founder and chairman.
The company’s board “is not aware of any information that indicates that Bao’s unavailability is or might be related to the business and/or operations of the group which is continuing normally”, according to the statement.
Renaissance did not reply to an emailed request for clarification from the South China Morning Post.
Renaissance’s investment banking head Wang Lixing told employees on Friday morning to “believe in the group, believe in the executive committee, not lose our heads”, and “not to spread or believe rumours”, according to a report by the Financial Times, citing a message to staff. “The available information is limited”, he said.
Bao, born in Shanghai, worked for Morgan Stanley and Credit Suisse in London, New York and Hong Kong before striking out on his own in 2005 to establish Renaissance. He took his firm public in 2018, naming it Huaxing in Chinese, in a nod to his belief that China is in a period of its cultural, political and economic renaissance.
The bank has been an active matchmaker in China’s financial circles, especially in the fast-expanding internet-related technology industry.
Those who got their hands on Kuaishou’s shares got a 190 per cent windfall when the stock surged on their trading debut. The stock lost 80 per cent of its value within six months, and remains below its initial offer price.