Mystery Deepens Around Missing Chinese Banker and $11 Million Payment

A prominent Chinese investment bank, once renowned for orchestrating major deals in the nation’s tech industry, recently disclosed a surprising $11 million payment tied to the disappearance of its founder, Bao Fan. This revelation has only intensified the intrigue surrounding Bao, who established China Renaissance in Beijing in 2005 and quickly rose to prominence as a leading financier for tech giants in the country.

Authorities have demanded this payment but have not disclosed specific details, adding another layer of uncertainty to Bao’s vanishing. Bao was instrumental in negotiating the 2015 merger of Meituan and Dianping, two of China’s largest food delivery platforms, whose combined services now permeate daily life throughout the nation. His disappearance has left a void in the financial sector, further eroding business confidence during a period of economic stagnation.

Bao’s case follows a pattern seen among high-profile Chinese business leaders who have suddenly gone missing without explanation. China Renaissance announced Bao’s disappearance in February 2023 amid a broader anti-corruption campaign. Despite the passage of more than 18 months, no formal charges or allegations have been made public.

Reports from state-run financial publication, the Economic Observer, indicated that Bao had been detained by the Central Commission for Discipline Inspection, China’s top anti-corruption body, due to his alleged involvement in a corporate bribery investigation. Last February, he formally resigned as chairman and CEO of China Renaissance, citing health reasons and a desire to focus on his family.

The bank’s recent disclosure of the $11 million payment emerged in a separate, delayed stock exchange filing in Hong Kong. The bank noted that it had limited information about the investigation or Bao’s role in it, stating that the payment demand was made in the final quarter of 2023 and was subsequently settled. According to a report by the Financial Times, the bank’s auditors faced significant challenges in categorizing the payment, ultimately listing it under “other receivables.”

China Renaissance emphasized that, while the payment could be viewed by authorities as “property associated with a case under investigation,” it does not imply any legal ruling or penalty. Their legal advisors have suggested the funds might either be returned or seized, and additional payments could also be required.

Due to the uncertainty surrounding the payment, the bank’s current auditor, Zhonghui Anda CPA, issued a “qualified opinion” on its 2023 financial results, signaling potential gaps or inaccuracies. The bank’s previous auditor, Deloitte Touche Tohmatsu, one of the world’s largest accounting firms, had resigned in December after being unable to establish contact with Bao.

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