Increasingly in China, a suddenly absent boss has come to signal a crackdown or investigation by authorities. In many cases, the person is said to be “assisting” graft probes.

Publicly listed companies typically report they have lost contact with the executive and need to make their own inquiries into what happened within the country’s opaque legal system.

A suave and outspoken dealmaker, Bao built China’s pre- eminent tech-focused investment bank. He convinced a Jack Ma-backed company to become a cornerstone investor when his firm went public in 2018 and has been the go-to banker for the biggest tech stars. 

Bao is among China’s “western-educated individuals with lots of connections with the global financial elite,” said Victor Shih, an associate professor at University of California San Diego who specializes in China’s banking policies. “We don’t see those types suddenly running into such serious trouble that
often.”

Bao studied English literature at China’s prestigious Fudan University and received a master’s degree in business and economics from the BI Norwegian School of Management in 1995. He once said it was his mission to “participate in the value creation of the greatest entrepreneurs” in China. 

A former banker at Morgan Stanley and Credit Suisse Group AG, 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 Inc. and food-delivery giant Meituan. 

 

Eoin Treacy's view

When China accompanied the abandonment of Covid-zero with dovish rhetoric towards the markets, the USA, and signaled additional assistance to the domestic economy, investors breathed a sigh of relief.


The Hang Seng Property Index and the broad Hang Seng both had deep short-term oversold conditions ahead of the transition. They were ripe for rebounds on any sign of good news and that has now occurred.

With senior financial sector figures disappearing, the market is waking up to the reality that China’s administration is not nearly as warm and fuzzy as many might wish and stocks are rolling over.

Both indices dropped back below their respective 200-day MAs today and a clear upward dynamic will be required check scope for additional downside.
The tech-heavy ChiNext Index is now pulling back from the region of both the 200-day and 1000-day MAs. The reasserted the medium-term downtrend.