Star China banker Bao Fan’s disappearance made his firm a buyout target

About a year after Bao Fan disappeared from public view, his boutique Chinese investment bank is shrinking and being circled by rivals.

Almost a third of China Renaissance Holdings’ staff in Hong Kong, which includes investment banking, private equity and wealth management teams, have either resigned or lost their jobs, people familiar with the matter said. Li Yuan, who oversees the wealth business, is leaving the company. Including mainland China, about 100 staffers left the firm in the past year, one of the people said.

At the same time, the firm has received interest from a Hong Kong-based financial group with a Middle East backer to take over what remains, including valuable trading licenses, the people said. A couple of small Chinese brokerages have also shown interest. The discussions were preliminary and no due diligence has taken place.

Talks with prospective buyers have been difficult because Bao’s detention has prevented the firm from making decisions on significant matters, the people said, asking not to be identified discussing a private matter. That hurdle may now be cleared after China Renaissance announced last week that Bao resigned as chairman and chief executive officer effective Feb. 2, citing “health reasons and to spend more time on his family affairs.” Co-founder Xie Yi Jing will assume his duties.

A company spokesperson declined to comment. China Renaissance said in August that Bao was “cooperating” in a probe. His current whereabouts and legal status are unclear.

Bao’s disappearance last February shocked the business and investing community, in a further sign of Beijing tightening its grip on the financial sector through a sweeping crackdown on corruption. Bao’s detention was likely related to China Renaissance’s former president Cong Lin, who was taken into custody in 2022, Bloomberg News has reported.