The executive head of a company vanished, following which the organization's bank received an enigmatic invoice totalling $11 million.
The request for payment from unidentified Chinese officials intensifies the enigma surrounding Bao, who established top-tier investment firm China Renaissance in Beijing in 2005 and became a key player in dealmaking for Chinese tech companies.
He facilitated the 2015 merger of China's prominent food delivery services, Meituan and Dianping. Today, their merged "super app" platform is extensively prevalent in China.
Bao's enigmatic disappearance has sparked widespread alarm in China's financial and tech industries, exacerbating business unease during an economic downturn.
This incident follows a series of disappearances of prominent Chinese business leaders, where executives often disappear without warning or explanation.
In 2023, China Renaissance announced Bao's absence during a wider anti-corruption campaign. More than a year and a half later, no formal accusations or allegations have been leveled against him.
Last summer, the Economic Observer, a state-run financial publication, reported that Bao was in the custody of the Chinese Communist Party's anti-corruption watchdog, the Central Commission for Discipline Inspection, since his disappearance. He was alleged to be involved in an investigation involving suspected corporate bribery.
CNN has been unable to contact Bao since his disappearance.
The Mysterious Invoice
In February, Bao formally relinquished his position as China Renaissance's chairman and CEO, citing health concerns and family commitments, according to a statement submitted to the Hong Kong stock exchange.
China Renaissance disclosed the existence of a $11 million invoice last week in a separate, delayed report to the stock exchange. The investment bank stated, "We are not privy to, and do not have reliable information, regarding the status of any investigation in which Mr. Bao is cooperating."
The bank admits it has minimal information about the case, including the invoice and related payment request, which was received in the last three months of 2023 and subsequently paid. Its auditors have found it challenging to account for the payment in the financial records, as reported by the Financial Times, based on unnamed sources. CNN has reached out to the investment bank for additional details.
Eventually, China Renaissance categorized the payment under "other receivables," which usually refers to any outstanding debts owed to a company by clients for delivered goods or services.
The bank's Chinese auditor, Zhonghui Anda CPA, issued a "qualified opinion" on its 2023 annual results, citing potential omissions or inaccuracies.
Deloitte Touche Tohmatsu, one of the 'Big Four' global accounting firms, resigned as China Renaissance's auditor in December, as they were unable to connect with Bao.
Bao's sudden departure from China Renaissance as chairman and CEO, citing health concerns, occurred within the context of a tech-driven business environment, further highlighted by the existence of a $11 million invoice and related payment request.
Despite the payment's unclear origins and Zhonghui Anda CPA's qualified opinion on China Renaissance's annual results, the bank continues to operate in the tech-focused investment sector, showcasing the resilience of the tech business world in China.
