Bao Fan, the founder and executive director of China Renaissance has gone missing. He is one of the well-known figures in the tech industry. He played a major role in the emergence of a string of large domestic internet startups.
On thursday, Chinese stock exchange announced that they are unable to contact Bao. However, did not give any details of it. Upon the news, there was a rapid and significant drop in the stock price.
Significant drop in stock price
Stock exchange experienced a significant drop of 50% at one point in time, however, eventually recovered and was only down about 30% from its previous value. Financial news outlet Caixin,states that a 52-year-old fan has been unreachable for two days as of Thursday evening.
According to the Wall Street Journal, the executive committee of China Renaissance told employees not to worry in a message on Friday morning. “We believe that everyone has had a restless night. At this time, we hope that you do not believe in or spread rumors”.
Could be a long-term overhang on the stock
Willer Chen, a senior analyst at Forsyth Barr Asia, told Bloomberg the executive’s absence “could be a long-term overhang on the stock, given Bao is the key man for the company”.
A spokesperson for China’s foreign ministry, Wang Wenbin, said he was “not aware of the relevant information” when asked about Bao’s disappearance.
“But I can tell you that China is a country under the rule of law,” he said. “The Chinese government protects the legitimate rights of its citizens in accordance with the law.”
China Renaissance has developed into a global financial institution. It has more than 700 employees and offices in Beijing, Shanghai, Hong Kong, Singapore and New York.
