Bao Fan Freed After Two Years Missing, Chinese Finance Sector Stirred

Prominent Chinese tech financier and banker **Bao Fan** has been released by authorities after a more than two-year disappearance, a development that may signal shifts within Beijing’s crackdown on its financial elite.

Financier’s Release Sparks Discussion

A former colleague confirmed **Mr. Bao**’s release to AFP, stating he had been cooperating with an unspecified investigation. The news, first reported by financial outlet Caixin, comes after **Mr. Bao** vanished in February 2023, a move that sent ripples through the finance industry.

Key Deals and Tech Tycoons

Bao Fan, a celebrated figure in venture capital, was instrumental in the rise of China’s tech titans. He facilitated landmark mergers, including those of ride-hailing platforms Didi and Kuaidi Dache, and food delivery giants Meituan and Dianping.

His close ties to top tech executives and previous roles at Credit Suisse and Morgan Stanley cemented his status as a significant dealmaker.

Crackdown and Economic Climate

Mr. Bao‘s disappearance occurred amid a broader anti-corruption campaign led by President Xi Jinping, which has targeted perceived “lavish lifestyles” among the financial elite. In February 2024, his investment bank, China Renaissance, announced his resignation as head.

This development unfolds as China aims to restore confidence in its private sector, which faces challenges from weak domestic consumption and a property debt crisis, compounded by US trade tensions. In 2023, China’s private sector investment grew by a mere 1.4%, significantly lower than previous years (Reuters, 2024).

“This is certainly a positive signal, as Bao was the most high-profile financier detained in recent years,” said Christopher Beddor, deputy China research director of Gavekal Dragonomics.

“Still, it won’t change the fact that the anti-corruption campaign continues to churn through the financial sector, and the common prosperity campaign has led to sweeping pay caps and even clawbacks,” said Mr. Beddor. “China’s financial sector remains a long way from its heyday only a few years ago.”

Investigation Scope Remains Vague

The lack of clarity surrounding the investigation into **Mr. Bao** caused significant unease. China Renaissance shares were suspended in April 2023 following the bank’s announcement that **Mr. Bao** was cooperating with authorities, and after it delayed its annual results.

While sources previously suggested **Mr. Bao** was assisting with an inquiry into a former colleague, official details on the investigation’s scope were never provided.

A Pattern of Disappearances

Mr. Bao joins a list of prominent figures in business, entertainment, and sports who have disappeared with little official explanation. Notable cases include Alibaba founder **Jack Ma**, who was out of public view for three months in 2020, and business tycoon **Ren Zhiqiang**, who was jailed for 18 years.

Recent purges within President Xi Jinping’s cabinet have also affected top military officials and high-ranking ministers, reflecting ongoing factional politics.