TMTPOST—Investment bank China Renaissance Holdings saw its stock price tumble on Monday as trading resumed in Hong Kong, following a 17-month suspension. The shares had been halted after its co-founder and actual controller, Bao Fan, came under investigation by Chinese regulators.

Shares of Beijing-based China Renaissance ended 66% lower on Monday at HKD2.45 (US$ 0.31) per share, after initially plunging as much as 73% to HKD1.98 during intraday trading.

The suspension of trading followed the firm’s announcement in March 2022 that Bao had been taken away for regulatory investigation, though no specific reasons were disclosed. Media reports suggested that the probe was linked to illegal activities in the ship leasing business involving Cong Lin, former chairman of Huaxing Securities, a subsidiary of China Renaissance.

Bao’s detention had significant ramifications for the company. China Renaissance was unable to complete its annual audit and was forced to delay the release of its 2022 financial results, which led to the prolonged trading halt.

In February of this year, China Renaissance announced that Bao had stepped down as executive director, chairman, and CEO, along with all other positions in the company, citing health reasons. Co-founder Xie Yijing took over his roles.

On September 6, the company revealed that Bao's wife, Hui Yin Ching, was appointed as a non-executive director for a three-year term, on the recommendation of CR Partners, the controlling shareholder. Hui had not previously been involved in the company’s operations and confirmed she has not received any regulatory notices or been linked to the ongoing investigations involving Bao, China Renaissance added.

Bao and Hui control BH Partners, which owns 79% of CR Partners, the largest shareholder of China Renaissance.

Founded in 2005 by Bao, China Renaissance was a major player in China’s venture capital scene. The firm facilitated significant mergers in the tech sector, including the merger between Didi Dache and Kuaidi Dache, which led to the creation of ride-hailing giant Didi Global. It also provided services to leading Chinese internet companies, such as JD.Com, 360 Security Technology, iQiyi, and Momo.