CEO's Disappearance Leads to Mysterious $11 Million Bill for Chinese Bank

A prominent Chinese investment bank, known for its significant deals in the tech sector, has disclosed receiving a substantial bill of 78 million yuan ($11 million) linked to the disappearance of its leading banker, Bao Fan.

The payment request from unidentified Chinese authorities adds to the enigma surrounding Bao's whereabouts. Bao, who founded China Renaissance in Beijing in 2005, played a crucial role in major tech mergers, including the 2015 union of Meituan and Dianping, which now operates a widely-used "super app" in China.

Bao's sudden disappearance has caused ripples in the Chinese financial and tech industries, further shaking business confidence amid an economic slowdown. His case mirrors other high-profile disappearances of business leaders in China, where executives often vanish without explanation.

In February 2023, China Renaissance reported Bao missing during a broader anti-corruption campaign. Despite the passage of a year and a half, no official charges or allegations have been made against him. Reports suggest Bao has been in the custody of the Central Commission for Discipline Inspection, China's top anti-graft body, since his disappearance, linked to a corporate bribery investigation.

A Mysterious Bill

In February, Bao officially resigned as chairman and CEO of China Renaissance, citing health reasons and a desire to focus on family matters. The bank revealed the $11 million bill in a recent stock filing, stating it has limited information about the investigation involving Bao.

The payment, received in late 2023 and subsequently paid, puzzled the bank's auditors, who struggled to categorize it. Ultimately, China Renaissance listed it under "other receivables," typically referring to money owed to a company after providing goods or services.

The bank's lawyers indicated that the payment might be considered "property associated with a case under investigation" by Chinese authorities, without implying a legal judgment or fine. The amount could be refunded, confiscated, or potentially increased.

Due to the mysterious payment, the bank's Chinese auditor, Zhonghui Anda CPA, issued a "qualified opinion" on its 2023 annual results, suggesting possible omissions or misstatements. The previous auditor, Deloitte Touche Tohmatsu, resigned in December, unable to reach Bao.