China Releases Star Dealmaker Bao Fan Released From Detention

One of China’s most famous financial dealmakers, who was detained by authorities more than two years ago, has been released from detention, a source has revealed.

Bao Fan, founder of the boutique investment bank China Renaissance Holdings, was taken away by Chinese authorities in 2023 in a mysterious incident that sent shockwaves through the country’s financial sector when news emerged that people were unable to contact him.

Bao, who founded the bank in 2005 with two other men and still owns nearly 49% of the company’s issued shares, was one of the several high-profile financial executives who went missing in recent years with little explanation amid a sweeping anti-corruption campaign spearheaded by President Xi Jinping.

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Campaign against lavish lifestyles

His disappearance rattled professionals in the financial industry in the world’s second-largest economy, as Beijing dialled up its campaign to rein in the “lavish lifestyle” of the “financial elite”.

His release comes as Beijing recently stepped up efforts to boost business confidence, particularly among the country’s tech entrepreneurs, whose businesses have suffered from a years-long crackdown.

China is looking to boost confidence in the private sector, which has been reeling from weak domestic consumption and a prolonged debt crisis in the property sector, amid the broader backdrop of heightened trade tensions with the United States.

Bao, widely regarded as one of China’s best-connected bankers, was released from detention earlier this week, the person said on Friday, declining to be identified as the information was not public.

He had been involved in high-profile deals including the mergers of ride-hailing firms Didi and Kuaidi, food delivery giants Meituan and Dianping, and travel platforms Ctrip and Qunar.

China Renaissance didn’t immediately respond to Reuters’ request for comment, and Bao did not respond to a Reuters email seeking comment. Chinese media Caixin first reported Bao’s release, citing unidentified sources.

Renaissance shares jump

China Renaissance shares jumped 17% on Friday to close at HK$6.87 ($0.8752) before the news of his release became public.

Bao, who previously worked at Credit Suisse and Morgan Stanley, went missing in February 2023.

Trade in China Renaissance shares was suspended in April 2023 after the bank delayed publication of its audited annual results as a result of mainland Chinese authorities taking away Bao to cooperate with an investigation.

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. China Renaissance shares plunged 72% on the day it resumed trading in last September.

Sources have previously told Reuters that he was taken away to assist in an investigation into a former colleague.

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.