Reuters
- Missing Chinese CEO Bao Fan is cooperating on a government probe, his investment bank said Sunday.
- It's the first time China Renaissance has given a reason for Bao's disappearance earlier in February.
- Shares in the firm plunged 28% after Bao dropped from sight, prompting some to call China "uninvestible."
Missing Chinese billionaire tech dealmaker Bao Fan is working with government authorities on a probe, his firm China Renaissance said Sunday.
It's the first time the leading Chinese investment bank has given a reason for Bao's disappearance, after it said on February 16 that it was unable to contact its CEO and founder.
Hong Kong-listed shares in China Renaissance plunged over 28% in the wake of that news, and are still trading around that level despite rising about 2.1% on Monday.
"Since the Announcement, the Company has been trying to locate Mr. Bao and ascertain his status," the firm said in a stock exchange filing Sunday.
"The Board has become aware that Mr. Bao is currently cooperating in an investigation being carried out by certain authorities in the People's Republic of China," it said.
The Beijing-based firm, which said its day-to-day operations are continuing as normal, added that it will assist with any lawful request by the Chinese authorities.
The upset at China Renaissance started in September, when Chinese authorities took away its president, Cong Lin, according to a Caixin report.
Cong — also the former chairman of the firm's subsidiary Huajing Securities — is believed to be the target of an official investigation into whether Huajing breached anti-corruption requirements in securities law.
Investors close to Bao told the Financial Times the rock star tech dealmaker's troubles are likely to be connected to Cong's problems and that they hoped Bao's cooperation would secure his release.
The speculation around Bao comes as the Chinese authorities pursue a crackdown on the tech sector that has pushed Alibaba Group founder Jack Ma to duck out of the spotlight.
The clampdown is seen as chilling investors' appetite for Chinese tech stocks. Influential firm Muddy Waters Research has said the latest moves underline that China should be considered as "uninvestable."