China's Leshi questioned by bourse over trading suspension risk

HONG KONG (Reuters) - Leshi Internet Information & Technology Corp Beijing, the debt-laden Chinese tech firm founded by Jia Yueting, has been formally asked whether trading in its shares was at risk of suspension, showed a regulatory filing on Wednesday.

According to a filing on the exchange’s website, the Shenzhen Stock Exchange sent a query to Leshi containing 33 questions, including whether it risks net assets turning negative, which would trigger a share trading suspension.

Leshi’s net asset declined to 304 million yuan ($47.70 million) at the end of March.

The firm’s revenue and profit has dwindled since the second quarter of 2017 amid a financial crisis involving founder Jia and his LeEco conglomerate, of which Leshi is the main entity.

It reported a net loss of 307 million yuan for the first quarter of 2018, and a loss of 13.9 billion yuan for all of 2017.

Leshi was also questioned regarding its business operations, impairment of assets and auditing issues.

The exchange has requested a reply from Leshi by May 18, the filing showed.