China Renaissance dives 66pc as trading resumes

Shares of China Renaissance (1911) fell as much as 72 percent when it resumed trading 17 months after being halted due to a probe involving the boutique investment bank's former chief executive Bao Fan.

The selloff erased as much as HK$3 billion in market value and the stock ended the day 66 percent down at a record low of HK$2.45

The resumption in trading came after the lender published its long-overdue financial results last week which showed an attributable loss of 471.9 million yuan (HK$516 million) for 2023 and a loss of 73.8 million yuan for the six months ended June 30.

The firm sent shockwaves through the China's financial sector in February last year when it announced it was unable to contact Bao, who founded the bank in 2005 with two other men and still owns nearly 49 percent of the company's issued shares.

Trade in China Renaissance shares was suspended in April 2023 after the bank delayed publication of its audited annual results as a result of mainland authorities taking away Bao to cooperate with an investigation.

Reuters and staff reporter