China Renaissance, a prominent Chinese investment bank known for its major deals in the tech sector, has disclosed a substantial bill of 78 million yuan (approximately $11 million) related to the disappearance of its founder, Bao Fan. Bao, who founded the bank in 2005, played a key role in significant transactions, including the 2015 merger of Meituan and Dianping, a major player in China’s food delivery market.
Bao’s unexplained disappearance has intensified concerns in China’s financial and tech sectors, exacerbating uncertainty during an economic slowdown. His case is part of a broader trend where high-profile executives in China sometimes vanish amid anti-corruption investigations.
In February 2023, China Renaissance reported Bao missing amidst a sweeping anti-corruption crackdown. Reports from the Economic Observer suggested that Bao had been in the custody of the Central Commission for Discipline Inspection, China’s top anti-graft body, and was under investigation for suspected corporate bribery. No formal charges have been made against Bao.
The recent revelation of an $11 million bill has further deepened the mystery. China Renaissance disclosed this in a delayed stock filing, noting that the bank has limited information about the payment’s context. The bill, received in late 2023, was classified under “other receivables,” a category for outstanding amounts owed to a company after services are delivered.
China Renaissance clarified that while this payment might be associated with an ongoing investigation, it does not necessarily imply a legal judgement or fine. The bank’s lawyers have indicated that the amount could be subject to refund or confiscation, and additional payments may be required.
Due to the uncertainty surrounding the bill, the bank’s auditors, Zhonghui Anda CPA, issued a “qualified opinion” on its 2023 financial results, signaling potential issues with the financial statements. Deloitte Touche Tohmatsu, the previous auditor, resigned in December after failing to make contact with Bao.
The opaque nature of Bao’s situation and the financial implications for China Renaissance highlight the broader challenges faced by businesses in China amidst stringent regulatory environments and political uncertainties.
