China banking tycoon Bao Fan ‘cooperating with investigation’

Fan Bao, founder, Chairman and CEO of China Renaissance Group, an investment bank led by one of the country’s most famed rainmakers, holds a news conference on its IPO in Hong Kong, China September 13, 2018. — Reuters
Fan Bao, founder, Chairman and CEO of China Renaissance Group, an funding financial institution led by one of many nation’s most famed rainmakers, holds a information convention on its IPO in Hong Kong, China September 13, 2018. — Reuters

BEIJING: Chinese language billionaire Bao Fan is “cooperating in an investigation” by authorities, his firm mentioned, nearly two weeks after his disappearance sparked fears of a renewed crackdown on the nation’s monetary companies business.

The China Renaissance chairman rose to fame as a key participant within the emergence of a number of the nation’s greatest tech giants, supervising blockbuster IPOs and a landmark merger between main ride-hailing agency Didi and its high competitor on the time, Kuaidi Dache.

His Hong Kong-listed agency mentioned in a submitting dated Sunday that it was now “conscious that Mr. Bao is at the moment cooperating in an investigation being carried out by sure authorities” in mainland China.

“The Firm will duly cooperate and help with any lawful request from the related PRC authorities, if and when made,” it added, referring to the nation by its official identify: the Folks’s Republic of China.

The agency didn’t present particulars in regards to the nature of the investigation, and instructed AFP on Monday it had no further remark.

“The corporate will make additional announcement as and when acceptable,” a spokesperson mentioned.

Shares within the firm slumped as a lot as 50% at one level following the February 16 announcement that he was missing, earlier than clawing again to sit down at round 30% down.

Whereas but to recuperate from that stoop, the agency was up 2.1% in afternoon buying and selling on Monday.


China Renaissance has change into a world monetary establishment since its founding in 2005, with greater than 700 workers and workplaces in Beijing, Shanghai, Hong Kong, Singapore and New York.

The group has supervised the IPOs of a number of home tech giants, together with main e-commerce agency, in addition to the 2015 merger between two of the nation’s high ride-hailing apps.

That very same yr, Bao appeared on Bloomberg Market’s 50 Most Influential listing, with the monetary newswire writing the “fast-talking” banker had the power to “prepare virtually something in China’s vibrant tech scene”.

However an aggressive crackdown by President Xi Jinping on alleged corruption has since clipped the wings of a lot of China’s main financiers and main tech corporations.

In line with monetary information outlet Caixin, China Renaissance president Cong Lin was taken into custody final September as authorities launched a probe into his work on the monetary leasing unit of state-owned financial institution ICBC.

And in 2017, Chinese language-Canadian businessman Xiao Jianhua was arrested by mainland authorities, receiving a 13-year jail sentence for corruption final August.

Recognized to carry shut ties to high Chinese language Communist Celebration leaders, the billionaire was reportedly kidnapped from his Hong Kong resort room by plainclothes law enforcement officials from Beijing.

On the time of his arrest, Xiao was certainly one of China’s richest males, with an estimated fortune of $6 billion.

Alibaba founder Jack Ma has additionally seen his fortune fall by round half to an estimated $25 billion after regulators pulled the plug on what would have been the world’s biggest-ever IPO — that of fintech big Ant Group.

A reshuffle of Ant’s shareholding construction introduced in January noticed Ma, who has since receded from public view, cede management of the megafirm he based in 2014.

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