Exclusive: Two ChemChina Ex-Leaders During Syngenta Deal Hit With Corruption Probe

Two former executives of ChemChina, Ren Jianxin and Yang Xingqiang, are under investigation for serious legal and disciplinary violations related to their roles in a controversial loan guarantee during their tenure at the company [para. 1][para. 2]. The Central Commission for Discipline Inspection announced the probe, which is connected to a failed loan repayment that resulted in significant financial losses for ChemChina [para. 2].

The issue began when Bank of Gansu issued loans totaling 2.5 billion yuan to Gansu Tianji Investment Management Co. Ltd., with ChemChina acting as guarantor. The loans were never repaid, leading to a court ruling in 2022 that held ChemChina responsible for approximately 3 billion yuan, including late fees and interest [para. 4][para. 5]. This financial debacle has already led to the detention of two senior figures from Bank of Gansu last year [para. 3].

Ren and Yang also played pivotal roles in ChemChina's acquisition of Syngenta in 2017, a deal valued at over $40 billion. This acquisition was heavily financed through debt, contributing significantly to ChemChina's financial burdens [para. 6]. Following this, in 2021, ChemChina merged with Sinochem Group to form Sinochem Holdings Corp. Ltd., partly aiming to spin off Syngenta into a public entity on the Chinese mainland [para. 7].

However, Syngenta's planned IPOs have faced multiple setbacks. Initially set for Shanghai’s STAR Market and later the main board, both attempts were canceled due to concerns about their potential impact on the secondary market’s liquidity [para. 8][para. 9]. Additionally, Syngenta's recent financial performance has been disappointing, with significant declines in sales and earnings reported in early 2023 [para. 10].