China’s top tech banker detained by anti-graft agency: Report

BEIJING – China Renaissance Holdings’ chairman Bao Fan has been detained since February by the country’s anti-graft investigators, the Wall Street Journal (WSJ) reported, citing unidentified people familiar with the matter.

The star banker’s detention by China’s Central Commission for Discipline Inspection is related to an earlier investigation into Mr Cong Lin, China Renaissance’s former president, according to the report.

Mr Bao is being held under a special form of detention known as “liuzhi”, or “retention in custody”, where a person may be detained for as long as six months without any access to a lawyer, the report said, adding that it remains unclear if Mr Bao will be formally arrested and charged.

The development may further unnerve the nation’s business elite and add to growing signs that President Xi Jinping is not yet letting up on his year-long crackdown on the private sector as well as the US$60 trillion (S$80.9 trillion) finance industry.

Before the detention,

the authorities had spoken to Mr Bao several times

over a period of months regarding the probe of Mr Cong, according to the report. Mr Bao was queried about a suspected quid pro quo involving a loan that Mr Cong had helped arrange for China Renaissance before joining the firm, the WSJ said.

Bloomberg News reported last month that Mr Cong had been involved in a probe by the authorities since September, while China Renaissance said last week that Mr Bao was cooperating in an unspecified investigation by the Chinese authorities.

Mr Xi launched a broad anti-corruption probe in late 2021 aimed at the nation’s financial sector, bringing down dozens of officials. Tian Huiyu, the former president of China Merchants Bank, was among the latest charged with violations including taking bribes.

The probe has also implicated the investment banking community, ensnaring bankers from brokerages including Everbright Securities and Guotai Junan Securities.

A former banker at Morgan Stanley and Credit Suisse Group, Mr Bao founded China Renaissance in 2005, making a name for the firm by brokering tough mergers that led to the formation of ride-hailing service Didi Global and food delivery giant Meituan. His knack for closing complicated deals and spotting rising tech stars made him one of China’s most influential financiers. BLOOMBERG