China's Leshi on verge of delisting as debts pile up

Startup's fall from grace fueled by overly aggressive expansion

Leshi Internet Information & Technology founder Jia Yueting, right, introduces an electric car. The company's expansion outside streaming services has led to a pile of debt it cannot repay. © Reuters

SHIN WATANABE, Nikkei staff writer

May 14, 2019 01:37 JST

DALIAN, China -- Chinese streaming service Leshi Internet Information & Technology's stock market listing has been suspended, the company said Monday, as debts mount from its aggressive diversification efforts.

The suspension was prompted by roughly 3 billion yuan ($439 million) in negative net assets booked for 2018. The company will be delisted from the Shenzhen Stock Exchange's ChiNext board for startups if it fails to regain positive net worth within the next year.