China Renaissance shares climb after statement on missing chairman (updated)

China Renaissance Holdings

27/02/2023 04:59

(Updates stock movement, comment, context)
       Feb 27 (Reuters) - Shares of China Renaissance Holdings
 1911.HK  rose as much as 9% on Monday after the boutique bank
said its missing chairman was cooperating with Chinese
authorities in an investigation.
    The Beijing-based investment bank, which did not disclose
details on the investigation involving Bao Fan or specify which
authorities, reiterated that the company's business and
operations remained normal.
        China Renaissance shares climbed to as much as HK$7.74
in early trade on Monday, the highest since Feb. 22, before
trimming gains to HK$7.34, still up 3.4%, compared to a 0.8%
decline in the benchmark Hang Seng Index  .HIS .
  
        The stock dived 50% on Feb. 17 after the boutique bank
said it was not able to reach its chairman and controlling
shareholder Bao, a famed deal maker who has been involved in a
series of major Chinese technology mergers.
  
        "We can only say the negative factor affecting the share
price has been digested," said Alex Wong, director of Alex KY
Wong Asset Management Company Ltd in Hong Kong. 
        Monday's share price gain was "limited" compared with
the  previous plunge, Wong said, adding that the company's
update on Bao's whereabout was not particularly positive piece
news nor negative. 
  
        Reuters reported on Feb. 20, citing two sources familiar
with the matter and some media reports, that authorities took
Bao away earlier this month to assist in an investigation into a
former colleague, Cong Lin, the company's former president, .
  
        The dealmaker's disappearance is the latest in a series
of cases of high-profile Chinese executives going missing with
little explanation during a sweeping anti-corruption campaign
spearheaded by President Xi Jinping.
  
        In 2015 alone, at least five executives became
unreachable without prior notice to their companies, including
Fosun Group Chairman Guo Guangchang, who Fosun later said was
assisting with investigations regarding a personal matter.
  
        Bao was involved with major technology mergers including
the tie-up of ride-hailing firms Didi and Kuaidi, food delivery
giants Meituan  3690.HK  and Dianping, and travel devices
platforms Ctrip  9961.HK  and Qunar.
  

 (Reporting by Donny Kwok; additional reporting by Kaiwen Xu;
writing by Roxanne Liu; Editing by Raju Gopalakrishnan)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))