Disappeared Chinese investment banker Bao Fan was preparing to move some of his fortune from China and Hong Kong to Singapore in the months leading up to his disappearance, according to four people with knowledge of the plans.
The billionaire founder and chairman of investment bank China Renaissance, which has brokered some of China’s biggest tech deals, is setting up a family office in the city-state to manage his personal wealth in the final months of 2022, the people said.
Many Chinese executives have set up family offices, private companies that manage investments, in Singapore after Beijing launched a regulatory crackdown on the technology sector and an anti-corruption crackdown. They increasingly see the city-state, the so-called “Switzerland of Asia”, as a place to park their money.
“Like many wealthy Chinese since the tech crackdown in China and during the pandemic lockdown, they are trying to diversify their wealth in Singapore,” one person said.
Bao, a Morgan Stanley and Credit Suisse veteran who founded China Renaissance in 2005, went missing this month and could not be reached, the company said last week. The bank said it was unable to contact Bao, who is chairman, chief executive and controlling shareholder.
Officials in China have yet to address Bao’s concerns. Renaissance China executive Cong Lin was arrested in September last year shortly after the Shanghai branch of China’s securities regulator summoned Cong for a “supervisory discussion” over allegations of wrongdoing at the group’s securities unit.
Bao’s loss has sent a chill through China’s international financial and business circles as Beijing tries to project a more business-friendly image since slowing down the harsh curve of the pandemic.
Bao has made China Renaissance one of China’s top financial institutions, often winning technology deals from larger Wall Street rivals.
However, Chinese president Xi Jinping has introduced policies that have hit the tech sector and wealthy tycoons including billionaire Jack Ma, whose Ant Group list was suspended by Beijing in 2020.
The number of family offices being launched in Singapore by Chinese nationals looking to secure their family wealth is on the rise and many from the mainland have moved to the city over the same period.
Individuals do not need to be physically present to set up a family office in Singapore, which offers a pathway to residency. The increase in demand for setting up family office funds and applying for tax incentives has led to long waiting times.
While getting capital out of mainland China is difficult, many wealthy people have assets in places such as Hong Kong, where it is easier to move money.
It is unclear whether Bao was successful in setting up the fund or whether the process is still ongoing. A search of the government portal did not show a family office with Bao listed as a director.
“It’s hard to know who created this single family office,” said one lawyer, who asked to remain anonymous due to sensitivity.
“Many of them use the names of their children or their spouses as directors [Monetary Authority of Singapore] does not license or manage because it does not manage third party money.
China Renaissance did not immediately respond to a request for comment.
The Singapore government has taken steps to increase the city’s attractiveness as a wealth management center. In 2019, MAS and the Economic Development Council created a Family Office Development Team to attract more family funds.
The number of family offices has grown from a few in 2018 to about 1,500 at the end of last year, according to Singaporean data analytics company Handshakes.
Additional reporting by Joe Leahy in Beijing