Leshi Internet Information and Technology Corp., the listed unit of Chinese tech group LeEco, has suspended trading after seeing stock prices rise the daily limit of 10 percent over five trading days.
The stock prices of Leshi opened at 4.03 yuan per share on Wednesday and climbed 10 percent to hit 4.15 yuan per share, raising the company’s market value to 16.6 billion yuan ($2.43 billion).
Leshi announced that to protect the interests of investors the company's stock will be suspended due to "continuous abnormal fluctuations."
The company will carry out necessary investigations and resume trading after disclosing the results of those investigations.
Over 12 trading days from Aug. 21 to Sept. 5, the company's stock climbed by the daily limit of ten percent for seven days, despite an overall market slowdown.
LeEco announced progress in paying Leshi debt on Aug. 21, but also emphasized it had received no new cash injection. Meanwhile, despite Leshi’s lackluster interim report on Aug. 29, LeEco’s embattled founder Jia Yueting stated that his Los Angeles electric car company Faraday Future had rolled out its first pre-production FF91.
During Wednesday’s trading, business offices of five securities agencies, located in Guangzhou, Nanjing, Shenzhen and Shanghai, purchased Leshi stocks worth 34.24 million yuan, despite the company’s earnings warning in the second half of the year.