Widely considered one of China’s most connected bankers, Bao went missing in 2023 with little explanation.
Bao Fan, the star deal maker and founder of boutique investment bank China Renaissance Holdings, was released more than two years after being detained by Chinese authorities, Reuters reports, citing someone with knowledge of the matter.
Bao, widely regarded as one of China’s most connected bankers, said on Friday that he was released from detention earlier this week, refused to be identified because information was not publicly available.
The Chinese Renaissance sent a shockwave through the country’s financial sector in 2023 when it announced it could not contact Bao, which founded a bank with two other men and still owns nearly 49% of the company’s issued shares.
He is one of several well-known executives in China, and mostly one of the financial industry executives, and has had little explanation in the massive anti-corruption campaign led by President Xi Jinping.
As Beijing pressed for a campaign to curb the “luxurious lifestyle” of the “financial elite”, his loss disappearance rattles off the world’s second largest economic financial industry expert.
His release comes when Beijing aims to boost business trust, especially among high-tech entrepreneurs in countries where businesses are struggling with years of crackdowns.
China aims to boost confidence in the private sector, which has been shaking from weak domestic consumption and a long-term debt crisis, with a broader backdrop of growing trade tensions with the US.
“This is certainly a positive signal, because Bao was the most well-known financial operator in recent years,” said Christopher Bedl, Associate Director of Chinese Studies at Dividkal Dragonomics.
“Nevertheless, the fact that anti-corruption campaigns continue to be resolved through the financial sector. The common prosperity campaign has even led to cleaning up pay caps and clawbacks,” Beddor said. “China’s financial sector has come a long way from its heyday just a few years ago.”
Famous deals
Bao was involved in high-profile deals, including the ride companies Didi and Kuaidi, Food Delivery Giants Meituan and Dianping, and the merger of Travel Platforms Ctrip and Quanar.
Neither the Chinese Renaissance nor Bao responded immediately to Reuters’ request for comment. Chinese media Caixin first reported the release of Bao, citing an unclear source.
Chinese Renaissance shares rose 17% on Friday, with news of his release at HK$6.87 ($0.8752).
Bao, who previously worked for Credits Wisdom and Morgan Stanley, went missing in February 2023.
Trade in Chinese Renaissance stocks was suspended in April 2023 after the bank delayed the issuance of annual results audited as a result of the bank detaining BAO as part of its investigation.
China’s financial publication reported that he was detained by disciplinary and superintendent in May 2023. Authorities have not yet explained it. Chinese Renaissance shares plummeted 72% on the day they resumed trading last September.
Sources previously told Reuters that he was taken away to help investigate his former colleague.
Xie Yi Jing, who co-founded the Chinese Renaissance, replaced Bao with the chairman last February.
Bao’s wife, Hui Yin Ching, was later appointed chairman of the boutique investment bank in October, and the ranks of other senior management positions have also been changed.
