[imagesource: China Renaissance]

China Renaissance, once a powerhouse in the tech dealmaking scene, has found itself at the centre of a new mystery after receiving a jaw-dropping 78 million yuan ($11 million) bill from authorities related to the vanishing of its star banker, Bao Fan.

The request, made by unnamed Chinese authorities, only deepens the intrigue surrounding Bao, the bank’s founder. Since starting China Renaissance in 2005, Bao played a key role in brokering some of the biggest deals in China’s tech sector, including the 2015 merger of Meituan and Dianping. Today, that merger has become the backbone of China’s omnipresent “super app.”

But Bao’s sudden disappearance has rocked China’s financial world. When China Renaissance reported him missing in early 2023 amid an anti-corruption sweep, it sent shockwaves through the business community, already grappling with an economic slowdown.

A year and a half later, Bao’s fate remains unclear, and no official charges have been brought against him.

Rumours have swirled. A state-run newspaper claimed last year that Bao was being held by the Central Commission for Discipline Inspection over suspected corporate bribery, but nothing concrete has come to light. CNN has been unable to contact Bao since he vanished.

This puzzling bill only adds to the confusion. In a stock filing, China Renaissance revealed that the $11 million demand was received in late 2023, and despite paying it, the bank admitted it has little insight into the investigation Bao is supposedly cooperating with.

The bank’s auditors were left scratching their heads, trying to figure out how to classify the payment, which eventually landed under “other receivables”—a vague category that usually refers to money owed to a company.

The authorities might view the payment as part of an ongoing investigation, but there’s no suggestion of a fine or judgment just yet. Lawyers have warned the bank that the payment could either be refunded or seized, and more payments may be on the way.

The lack of transparency around the whole ordeal forced China Renaissance’s Chinese auditor, Zhonghui Anda CPA, to issue a “qualified opinion” on the bank’s 2023 financials, implying there could be errors or missing information.

Deloitte, the bank’s previous auditor, quit in December, frustrated that they, too, couldn’t track down Bao.

[source:CNN]