Founder of China Renaissance Capital Still Detained After a Six-Month Detention

Credit: The Paper

BEIJING, Aug 10 (TiPost) —— Bao Xing, the founder and chairman of China Renaissance Capital Holdings, who was taken away to cooperate with relevant investigations last February, will continue to be detained, according to several informed sources.

China Renaissance Capital made an announcement in this regard on Wednesday night.

According to the announcement of China Renaissance, Bao is still cooperating with the investigation of the relevant Chinese authorities. The group's current business and operations are going normal, and the company's executive committee, including two executive directors Xie Yi Jing and Wang Lixing, and other management will continue to be responsible for the day-to-day management and operation of the group.

According to a person familiar with the matter, Bao's previous detainment period has been extended. "It was originally said to be until around last Sunday and then extended again after the recent expiration, but how long it will be further extended is not clear," said the informed source.

Bao was taken away in early February. Due to the inability to contact Bao, China Renaissance Capital's auditor Deloitte Touche Tohmatsu refused to sign the financial report. China Renaissance Capital announced a delay on April 3 in the publication of the audited annual results announcement for the year 2022 and China Renaissance Capital also announced the unaudited annual results for the year 2022 on the same day, which showed that the group has turned from being profitable to making a loss. The net loss amounted to 564 million yuan, compared with a profit of 1.624 billion yuan in 2021.

Bao is the actual controller of China Renaissance Capital. A previous equity filing with the Hong Kong showed that Bao had increased his stake in China Renaissance Capital by 108,000 shares on October 7, 2022, and after the increase in his stake, Bao had 277 million shares of China Renaissance Capital, with his shareholding percentage rising to 48.81%.

Bao was taken away a few months before China Renaissance experienced unusual personnel turmoil. Cong Lin, the president of China Renaissance Capital and chairman of China Renaissance Securities (Hong Kong), was taken away in early September 2022 by the authorities.

Cong was working in the Industrial and Commercial Bank of China (ICBC) for 30 years and was in the leading position in ICBC international over the last few years and had cooperation with China Renaissance. ICBC International also sponsored the China Renaissance Capital to go public in Hong Kong in 2018. Thus Cong and Bao to get closer. Later, Cong was invited to join China Renaissance with a substantial annual salary, which may sow the seeds of trouble. When Cong was investigated, Bao was under border control and could not leave the country, according to Caixin Media.