Debt-plagued Leshi plunges by daily limit

Leshi Internet Information & Technology Corp plunged by daily limit within seconds after its shares resumed trading on Wednesday.

The firm was a star on China's Growth Enterprise Market before it was caught in debt crisis last year. Its price had reached a record high of 179.03 yuan per share in 2015.

But the figure fell to 13.8 yuan per share on Jan 24. Because market players are bearish to the firm's outlook, Leshi's target price is bid at 3.92 yuan, or 3.91 yuan per share, by some fund companies, reported news outlets TechWeb.

That means the company will continue to tumble to daily limit for 13 straight days.

Leshi is a branch of Chinese internet conglomerate LeEco founded by Jia Yueting who is in the US raising funds for his car dream.

However, Leshi said on Tuesday that it is seeking to acquire equity stakes in the car businesses of Jia to ensure the units repay the outstanding debt they owe it.

The company said the move is an effort to resolve the financial strain and supply chain problems it faces, with stakes sought in Faraday Future, Lucid Motors and LeSEE, among others.

Jia is still largest shareholder with 25.67 percent of Leshi's shares. But he resigned from Leshi last year.

Currently, Sunac China Holdings Ltd, a Chinese real estate developer, holds 8.56 percent shares of Leshi, and the developer's founder and Chairman Sun Hongbin is the actual controller running Leshi.