China Renaissance Founder Bao Fan Resigns Following Detainment by Chinese Authorities
After being taken away by Chinese authorities last year, veteran Chinese investment banker and China Renaissance founder Bao Fan has resigned from his firm. The announcement was submitted to the Hong Kong Stock Exchange on Friday, where China Renaissance revealed that Bao Fan has resigned as chairman of the board of directors and chief executive officer, citing health reasons and the desire to devote more time to family matters.
It remains unclear whether Bao Fan is still being held by authorities, as the company did not disclose his whereabouts. Bao Fan founded China Renaissance in 2005 and played a significant role in establishing the firm as one of China’s most successful boutique investment banks.
His detainment by Chinese authorities last year sent shockwaves through China’s financial and business circles. He was considered a figurehead in China’s tech scene, having been involved in the creation of tech giants like DiDi Global, Meituan, and Pinduoduo. However, some companies associated with China Renaissance have been impacted by the Chinese government’s crackdown on the technology industry, leading to business restructurings and decreased market value.
Bao Fan’s resignation also raised questions about China Renaissance’s future, particularly after the auditing agency Deloitte Touche Tohmatsu resigned from its audit work for China Renaissance last December, citing the inability to sign the audit report without contacting Bao Fan.
China Renaissance’s revenue has faced pressure as some core business areas, particularly equity capital markets, have slowed sharply over the past few years. Additionally, the financing amount of newly listed companies in Hong Kong in 2023 saw a 56% decrease from the previous year, indicating a challenging market for the firm.
Despite Bao Fan’s resignation, China Renaissance stated that he did not have any differences with the company’s board of directors. Nevertheless, the uncertainty surrounding Bao Fan’s situation and the implications for China Renaissance’s future remain a topic of concern for investors and industry experts.