Star Chinese Tech Banker Bao Fan Resigns Amid Anti-Corruption Crackdown
In a surprising turn of events, Bao Fan, a prominent Chinese tech banker who vanished a year ago during Beijing’s anti-corruption crackdown, has officially stepped down from the company he founded. China Renaissance, the firm Bao established in 2005, announced his resignation in a filing to the Hong Kong stock exchange on Friday. The company cited “health reasons and the need to spend more time on his family affairs” as the reasons behind his departure.
China Renaissance did not provide any further details regarding Bao’s current status or whether there had been any contact with him. In April, the company had revealed that it had to postpone the release of its annual results due to auditors being unable to reach Bao. CNN has reached out to China Renaissance for comment but has not received a response yet.
Last summer, the Economic Observer, a state-run financial publication, reported that Bao had been in the custody of China’s top anti-graft watchdog since his disappearance in February 2023. The report suggested that he was under investigation for suspected corporate bribery. However, no official confirmation or details regarding the investigation have been released.
As part of the management reshuffle at China Renaissance, Xie Yi Jing, co-founder of the company, will take over as the new chairman, replacing Bao. Xie has also been “redesignated” from acting CEO to CEO of the company, according to the filing. This change in leadership is expected to bring stability to the firm and reassure investors amidst the uncertainty surrounding Bao’s departure.
Bao was considered a veteran banker in China’s tech industry and played a significant role in establishing China Renaissance as one of the top dealmakers for Chinese tech firms. One of his notable achievements was brokering the 2015 merger between Meituan and Dianping, two leading food delivery services in China. The merger resulted in the creation of a “super app” platform that has become ubiquitous in the country.
The sudden disappearance of Bao sent shockwaves through China’s financial markets and its tech sector. China Renaissance later stated that Bao was “cooperating in an investigation” by certain authorities in China, but no further details were provided. His disappearance coincided with a broader anti-corruption crackdown initiated by the ruling Communist Party, which has led to the investigation and arrest of numerous senior executives at major financial institutions in China.
Due to the uncertainties surrounding Bao’s status, trading of China Renaissance shares was suspended last April. However, the company recently appointed a new auditor following the resignation of Deloitte Touche Tohmatsu and expressed its intention to publish the 2022 annual results and 2023 interim report as soon as possible. The release of these financial results is crucial for the resumption of trading of the company’s shares on the Hong Kong stock exchange.
The resignation of Bao Fan marks a significant development in the ongoing anti-corruption crackdown in China’s financial sector. While the exact circumstances surrounding his departure remain unclear, it is evident that his absence has had a profound impact on China Renaissance and the wider tech industry. As the company navigates this challenging period, the appointment of Xie Yi Jing as the new chairman brings hope for stability and continuity in the face of uncertainty. Investors and industry observers will be closely watching for any further updates regarding Bao’s situation and its implications for China’s tech sector.