Bao Fan, CEO of giant bank in China, has disappeared

The disappearance of Bao Fan, one of China’s highest-profile investment bankers, has fueled speculation about a “new squeeze” in China’s financial industry.

Bao’s company, China Renaissance, said in a statement yesterday that it had lost contact with CEO Bao Fan. Shares of China Renaissance fell sharply in early trading in Hong Kong today.

HAS NOT BEEN HERE FOR 2 DAYS

The company did not specify how long Bao was missing. According to news from Caixin, one of China’s leading global business newspapers, staff have been unable to communicate with Bao for 2 days.

Bao’s bank clients include the world’s largest technology companies, Didi and Meituan. However, his signing’s announcement reaffirmed concerns about a possible crackdown on business and technology leaders in Beijing.

SPECULATION CAUSES

In late 2021, Chinese President Xi Jinping launched a sweeping anti-corruption probe targeting the country’s $60 trillion financial sector and fired dozens of officials. In addition, Ant Group opened investigations into giant monopolies like Didi.

However, the Beijing administration has softened its stance towards the private sector in recent months and issued a comprehensive measure to support the real estate sector. However, it is not known whether Bao’s disappearance is related to new pressures on the private sector.

WHO IS A FAN OF BAO?

As chairman of China Renaissance’s board of directors, Bao founded his company in 2005 as a boutique investment advisory firm. Since then, it has grown into one of the largest financial institutions in China. The company does business with the largest technology companies in the country.

Bao, who previously worked at Morgan Stanley and Credit Suisse, gained notoriety negotiating several mergers and acquisitions with China Renaissance. The giant bank acted as adviser to the initial public offerings of JD.com and Kuashou, as well as Didi’s listing on the New York Stock Exchange in 2021.