Shares of China's Leshi plunge 10% as trading resumes

  • Shenzhen-listed shares of Leshi Internet Information and Technology tumbled by the daily limit of 10 percent on Wednesday
People walk past Shenzhen Stock Exchange building on March 9, 2016 in Shenzhen, China.
Zhong Zhi | Getty Images
People walk past Shenzhen Stock Exchange building on March 9, 2016 in Shenzhen, China.

Shenzhen-listed shares of Leshi Internet Information and Technology tumbled by the daily limit of 10 percent on Wednesday as the stock resumed trading after a nine-month suspension.

The company asked in April for trading to be suspended pending an acquisition of LeEco's film unit for 9.8 billion yuan ($1.53 billion), a plan it eventually scrapped last week.

Leshi, once the main listed vehicle of LeEco, is seeking equity stakes in the car businesses of its largest shareholder, Jia Yueting, for debt owed by him and his companies amounting to as much as 7.5 billion yuan.

The stock fell to 13.8 yuan at the opening of trading in Shenzhen.

Several funds holding shares in Leshi, including China Post Fund, E Fund and Harvest Fund, have slashed their valuation of Leshi to less than 4 yuan per share, or a more than 70 percent discount to the closing price on April 14, 2017, the last trading session before the suspension.

During the trading halt, Leshi had been removed from several key indexes, including the blue-chip CSI300 Index and the start-up board index ChiNextp.