China regulator summons founder of debt-laden LeEco back to China

China’s securities regulator has formally ordered the founder of indebted tech conglomerate LeEco to return to China and sort out a mounting debt pile linked to his firms, ramping up pressure on the head of the embattled entertainment-to-autos group.

The Beijing branch of the China Securities Regulatory Commission (CSRC) said in a notice late on Monday that LeEco Chief Executive Jia Yueting must return to China before Dec. 31 to “fulfill his obligation” and protect investors’ rights.

LeEco, an entertainment, electronics and electric vehicles group founded by Jia, has struggled to pay its debts after rapid expansion into multiple sectors sparked a cash crunch, a plunge in the shares of a listed unit and led to multiple defaults.

The Beijing branch of the China Securities Regulatory Commission (CSRC) said in a notice late on Monday that LeEco Chief Executive Jia Yueting must return to China before Dec. 31 to “fulfill his obligation” and protect investors’ rights.

LeEco, an entertainment, electronics and electric vehicles group founded by Jia, has struggled to pay its debts after rapid expansion into multiple sectors sparked a cash crunch, a plunge in the shares of a listed unit and led to multiple defaults.

(REUTERS)