BRIEF: China Renaissance founder Bao Fan being probed for corruption

Billionaire investment banker Bao Fan is being investigated on suspicion of bribery, financial media Caixin reported on Thursday, a revelation that comes nearly two years after the founder and former chairman of China Renaissance Holdings Ltd. (1191.HK) mysteriously disappeared.

Bao’s case is currently still in progress and has been given to prosecutors for review, Caixin reported, citing unnamed sources. His case is closely tied to another investigation into Cong Lin, a former longtime executive at ICBC, China’s largest state-run bank, who came to work at China Renaissance in 2020. Bao’s case involves a 20 million yuan ($2.7 million) signing bonus paid by China Renaissance to Cong, and whether that bonus constituted a bribe.

With a resume that includes former stints at Credit Suisse and Morgan Stanley, Bao set up China Renaissance in 2004, according to his profile on LinkedIn. He first disappeared from the company two years ago, but it was unclear if he was suspected of a crime or simply assisting in an investigation. He resigned his role as chairman in February 2024.

Bao and his wife are currently seeking a buyer for China Renaissance and have received interest from potential acquirers in both China and overseas, the sources told Caixin. Potential buyers had started a bidding process for the company, but that was suspended due to Bao’s case currently entering a “critical period,” one source said.

China Renaissance’s shares were suspended after Bao’s disappearance but resumed trading last September. Since then they have lost about 60% of their value.

By Doug Young

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