Fan Bao cooperating with investigation - China Renaissance
Fan Bao, group chairman of China Renaissance, is “cooperating in an investigation being carried out by certain authorities” in China, the firm has announced.
It added that business is continuing as normal. China Renaissance has pledged to "assist with any lawful request from the relevant authorities," according to a statement.
The company announced that it had lost contact with Bao - also its founder, CEO, and controlling shareholder - on February 16. This came shortly after a Caixin report that linked Bao's disappearance with an investigation into Lin Cong, formerly chairman of Huaxing Securities, China Renaissance’s securities business. It is one of three core business units alongside private equity-focused Huaxing Growth Capital and an investment banking operation.
Last September, the Shanghai bureau of the China Securities Regulatory Commission (CSRC) said it was overseeing the implementation of changes at Huaxing Securities based on the “supervisory discussion” with Cong. It identified six problem areas, mainly involving conflicts of interest and deficiencies in risk management and internal controls.
China Renaissance was founded in 2005 and made its name as a financial advisor to the country’s unicorns. The partners then started to back some companies with their own money. This led to the creation of an investment management division and Huaxing Growth Capital, which launched its debut fund in 2013.
The investment management division had CNY 35.9bn (USD 5.2bn) in committed capital, including CNY 28.9bn in its main funds and the rest in project funds, as of June 2022. It had 10 active main funds as of December 2021: seven under Huaxing Growth Capital and three under Huaxing Healthcare Capital.
Last year, the firm achieved a CNY 3bn first close on its fourth renminbi-denominated fund. This followed a USD 800m second close on its fourth US dollar fund.
China Renaissance has offices in Beijing, Shanghai, Hong Kong, Singapore and New York, with more than 700 employees globally.
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