Chinese Billionaire and Investment Banker Bao Fan Missing: Possible Crackdown by Chinese Communist Party?
By Prominent Chinese billionaire and investment banker Bao Fan has gone missing, his company has reported, renewing fears of a possible crackdown from the Chinese Communist Party on business and tech figures.[0]
At the age of 52, Bao is known to be one of the most productive Famed for his capability in negotiating intricate mergers & acquisitions, such as those resulting in the establishment of Didi Global Inc. and Meituan, he is well-known.[1] Bao, who used to work at Morgan Stanley and Credit Suisse, is well-recognized in China's business world for his large network of contacts across various sectors.
China Renaissance, which is listed in Hong Kong and founded by Bao in 2005, said on February 16th that its operations remain unaffected by Bao’s absence, but the news sent its stock down as much as 50% the following morning.[1] Bloomberg News has received information from a source familiar with the situation, that Bao's family has been informed that he is providing assistance in an investigation, which is most likely linked to ex-China Renaissance President Cong Lin.
Bao is the controlling shareholder, chairman and executive director of China Renaissance, and is an active investor, backing many tech companies that have grown to giants including NIO Inc. and WuXi AppTec Co.[2]
The disappearance of Mr Bao follows other high-profile business leaders in China, including Fosun group founder Guo Guangchang, who vanished for several days in 2015, and Jack Ma, the founder of tech behemoth Alibaba, who dropped out of public for a year after making critical comments about China’s financial regulators before reemerging in public in late 2021.
It is not unusual for business executives to go missing in China, where authorities can detain people of interest for extended periods of time without providing any charges or access to legal counsel. According to Bloomberg, a person familiar with the circumstance divulged that Bao's family had been informed that the banker was cooperating with an inquiry. According to Bloomberg, Cong Lin, the President of China Renaissance, is also subject to an investigation.[3]
The board stated that they had no knowledge of any information that would suggest Bao's unavailability would have any effect on the company's business or operations.[4] The executive committee has ensured that the bank's operations are running as usual.[5]
0. “China Renaissance Shares Plunge More Than 20% After It Says Founder Bao Fan Is Missing” NBC 5 Dallas-Fort Worth, 17 Feb. 2023, https://www.nbcdfw.com/news/local/china-renaissance-shares-plunge-more-than-20-after-it-says-founder-bao-fan-is-missing/3196990/
1. “Analysis | China's Top Tech Banker Is Missing? Here's What That Means” The Washington Post, 17 Feb. 2023, https://www.washingtonpost.com/business/chinas-top-tech-banker-is-missing-heres-what-that-means/2023/02/17/73241a9a-ae98-11ed-b0ba-9f4244c6e5da_story.html
2. “China's top tech deal maker ‘goes missing', rattling industry” The Australian Financial Review, 17 Feb. 2023, https://www.afr.com/world/asia/china-s-top-tech-deal-maker-goes-missing-rattling-industry-20230217-p5clfk
3. “One of China’s top investment banks has a big problem: It can’t find its CEO” Fortune, 17 Feb. 2023, https://fortune.com/2023/02/17/bao-fan-missing-china-renaissance-shares/
4. “China Renaissance Shares Fall After Chairman Bao Fan Went Missing” MarketWatch, 17 Feb. 2023, https://www.marketwatch.com/story/china-renaissance-shares-fall-after-chairman-bao-fan-went-missing-26daeec1
5. “China Renaissance unable to contact CEO Bao Fan, shares plunge by 50% in early trade | Mint” Mint, 17 Feb. 2023, https://www.livemint.com/news/world/china-renaissance-unable-to-contact-ceo-bao-fan-shares-plunged-by-50-in-early-trade-11676606537628.html
