Hong Kong's China Renaissance halts trade, delays 2022 results (updated)

China Renaissance Holdings

03/04/2023 05:37

(Adds details, background)
       HONG KONG, April 3 (Reuters) - Boutique investment bank
China Renaissance Holdings  1911.HK  said its would delay its
audited annual results and suspend its stock trading from
Monday, after mainland authorities took away its chairman, Bao
Fan, to co-operate with an investigation.
    In a filing to the Hong Kong stock exchange, the bank said
auditors told it they were unable to complete their audit and
sign off on the earnings report until Bao, as controlling
shareholder, becomes generally available for contact.
    "While the company has used its best efforts to facilitate
the requests of the auditors", those requests are not matters
within the control of China Renaissance, the bank said in the
filing, adding that the board "was not able to reasonably
estimate when it would meet to approve" the 2022 annual results.
    The bank had an unaudited loss of 563.8 million yuan ($81.8
million) for 2022, compared with 1.6 billion yuan worth of net
income for the year earlier, Sunday's filing showed.  
    Late in February, the bank said in an exchange filing that
Bao Fan, its star dealmaker, was co-operating with authorities
in their investigation.
    Bao's disappearance in February sent shares in China
Renaissance down as much as 50%. The shares remain about 10%
down this year.
    The bank said the resumption of trade in its shares would
depend on the publication of its audited annual results.
    Authorities have not issued any official statement regarding
Bao's whereabouts.
($1=6.8915 yuan)

 (Reporting by Xie Yu; Editing by Clarence Fernandez)
 ((Yu.Xie@thomsonreuters.com;))