His ability to spot rising tech stars made him one of China’s most influential bankers, persuading billionaire Jack Ma to become a cornerstone investor when his firm went public in 2018. He later branched into private equity to back startups and tech firms, managing more than $US8.8 billion in assets at the end of 2020.

That all began to unravel when Bao was detained in February last year without any official explanation. China Renaissance said only that it had lost contact with him. He was later placed under detention for an unspecified investigation by Chinese authorities amid a broader sweep of the financial sector. Earlier this year, the former chairman and chief executive officer resigned “for health reasons and to spend more time on his family affairs,” according to a company statement.

The company offered no clues as to the founder’s whereabouts on Monday when it released earnings that had been delayed for more than a year. His current legal status is unclear.

The turmoil has taken its toll on the business, which has also been hit by a slump in deals as China’s economy slips into a deflationary spiral. The company recorded a loss of nearly 74 million yuan ($15.6 million) in the six months to June as revenue dropped 39 per cent to 329 million yuan. It posted a loss of 471.9 million yuan for all of 2023, the second year in a row in the red.

Almost a third of staff in Hong Kong, which includes investment banking, private equity and wealth management teams, either resigned or lost their jobs, Bloomberg News reported in February.

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China Renaissance’s shares plunged 66 per cent in Hong Kong on Monday, its first day of trading since March last year, reducing the firm’s market value to $HK1.39 billion ($270 million).

Elsewhere, there were at least 130 investigations and penalisation of financial executives and officials in 2023 alone. China has appointed a new head to crack down on financial corruption, indicating the probes aren’t finished.

In the absence of Bao, the firm has pledged to “usher in a new era.”

“Despite all kinds of difficulties and challenges, China Renaissance still actively seeks growth and forges ahead with determination in the midst of adjustments,” according to the earnings report.

Bloomberg

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