China Renaissance Holdings said on Sunday that its chief executive, Bao Fan, a leading investment banker in China, was cooperating with a government investigation, weeks after the company said it could not contact him.
In a presentation with the Hong Kong Stock Exchange, the company said its board “has become aware that Mr. Bao is currently cooperating in an investigation being conducted by certain authorities in the People’s Republic of China.”
The company said its operations were continuing as normal. He did not say where Mr. Bao was or identify the matter in which he is allegedly cooperating. Chinese media reported that the government asked Mr. Bao to help in an investigation related to a former China Renaissance executive.
The latest news followed the company disclosure on February 16 that he “could not contact” Mr. Bao. The announcement caused the company’s share price to plummet, and the stock has not fully recovered.
The disappearance of Bao, a major player in the growth of China’s technology sector, has raised fresh concerns that Beijing may again be targeting Chinese companies and the executives who run them. Under the leadership of Xi Jinping, the Chinese government has been exercising increasing control over the nation’s economy and business.
The Chinese government briefly detained Guo Guangchang, one of the country’s wealthiest people, in 2015, and two years later arrested Chinese-born billionaire Xiao Jianhua at his Hong Kong home. Alibaba Group founder Jack Ma also disappeared from public life for a time after criticizing Chinese regulators in 2020.
Mr. Bao is a leading figure in China’s technology sector. He worked at Morgan Stanley and Credit Suisse before founding China Renaissance in 2004. He became an early dealmaker for Chinese internet companies such as Alibaba and Tencent, which soared as the country’s economy opened up.
In recent years, Bao had adjusted his approach as Xi tightened his grip on the economy, echoing the Chinese leader’s rhetoric and working with a division of a state-owned bank.
