After more than two years in custody, Bao Fan, the founder of China Renaissance and one of the country’s most powerful negotiators, was freed. In the realms of politics and business, it is not uncommon for someone to abruptly disappear from the public eye, leaving behind a trail of curiosity, enquiries, and rumours. In some nations, the disappearance of a well-known person can swiftly become a topic of national and even global interest. These situations frequently involve significant people whose work puts them in contact with the most powerful circles, so their absence is all the more noteworthy.
Bao Fan, the founder of China Renaissance, was released two years after being missing
Bao Fan, founder of investment bank China Renaissance Holdings 1911.HK, has been released more than two years after being taken away by authorities, Chinese media Caixin reported on Friday, citing unidentified sources. Bao, a star dealmaker who went missing in February 2023, “has come out”, multiple sources told Caixin.
Bao, who previously worked at Credit Suisse and Morgan Stanley, was widely regarded as one of China’s best-connected bankers, having been involved in the mergers of several tech firms, such as ride-hailing firms Didi and Kuaidi. China Renaissance didn’t immediately respond to Reuters’ request for comment.
The arrest of Bao Fan rocked China’s financial industry and led to a change in leadership
China Renaissance sent shockwaves through the country’s financial sector in 2023 when it announced it was unable to contact Bao, who founded the bank in 2005 with two other men and still owns nearly 49% of the company’s issued shares. Shares of Hong Kong-listed China Renaissance plunged as much as 72% on the day it resumed trading in September last year, after a more than one-year suspension.
Xie Yi Jing, who co-founded China Renaissance, replaced Bao as chairman in February last year. Subsequently, Bao’s wife Hui Yin Ching was appointed as chairperson to lead the boutique investment bank in October, with changes in other senior management ranks as well. Bao’s prolonged detention rattled professionals in China’s financial industry as Beijing dialled up its campaign to rein in the “lavish lifestyle” of the “financial elite”.
The more general background of China’s changing financial environment
The resurgence of Bao coincides with China’s private sector adapting to more stringent regulatory monitoring. The government has taken broad action in recent years to reduce what it considers excessive risk-taking and to increase its control over important sectors, including technology and banking. Aspects of Bao Fan’s career that stand out:
- China Renaissance Holdings was founded in 2005.
- Advised on historic agreements for big companies like Didi and Meituan.
- Renowned for connecting international financing markets with China’s technology industry.
According to some observers, his release would indicate that authorities are taking a more cautious stance towards the private sector in an effort to win back investor trust. Others caution, meanwhile, that the fundamental demands on corporate executives have not changed. Either way, the world moves on, and companies are working hard to win, and as Microsoft beats revenue forecasts on strong Azure growth, it is a good example.
His release comes as Beijing recently stepped up efforts to boost business confidence, particularly among the country’s tech entrepreneurs, whose businesses suffered from a years-long crackdown. China Renaissance shares jumped 17% on Friday to close at HK$6.87 ($0.8752). Sources have previously told Reuters that he was taken away to assist in an investigation into a former colleague. A Chinese financial publication reported in May 2023 that he was detained by disciplinary and supervision officials. Authorities have as yet not given any explanation. As we wait for the U.S. to help fund deportations from Costa Rica.
GCN.com/Reuters