Trading in Leshi Internet Information and Technology stopped following the stocks instantly tanked into the daily limit of 10 percent, with analysts expecting the pattern to last for many trading times to come.
Leshi Internet is you’re main publicly traded arm of LeEco, once among China’s most ambitious companies founded by flamboyant entrepreneur Jia Yueting.
After vowing to take on Apple and Tesla, Jia made greatly and increased money from a wide assortment of investors to push the conglomerate into smartphones and electric cars and a number of other business lines, which have failed to bring in any substantial returns.
Jia himself was summoned by securities regulators back to China by the US, where he’s trying to develop electric automobile company Faraday Future.
In December, together with his title on China’s federal debtor’s blacklist that may prevent him from leaving the country if he returns, he sent his spouse in his place.
Leshi Internet had frozen trading since April of this past year ostensibly over its acquisition of LeEco’s film unit. At the time the firm traded at roughly 32 yuan ($5) a talk and boasted a $9.4 billion market capitalisation.
Last week the firm admitted the transaction would not go through, compelling it to resume trading this past week.
Several Chinese capital that maintain the online company’s shares have discounted them down to less than four yuan a share.