China's LeEco crisis causes 30 percent fall in stock price
Cash-strapped LeEco is facing more troubles as mutual fund investors have been cutting their target prices on LeEco's stock.
The revision would mean a 30% fall in the company's stock price after its trading suspension expires three months from now.
Twenty mutual fund investors have now lowered their forecast for LeEco's listed unit Leshi Internet Information and Technology, most saying the stock price should be around 22 yuan per share. First quarter mutual fund data show that there are 39 fund products now invested in Leshi stock, with a total market value of around 2.32 billion yuan before the suspension.
Many companies report investors cashing out their Leshi-related investments last week.
LeEco founder Jia Yueting resigned as chairman of Leshi last Thursday. Property developer Sunac's chairman Sun Hongbin replaced Jia as Leshi chairman. Sun said he will re-organize Leshi's current business to help turn things around.