Developers deny rumors about investing in LeEco arm: report

Chinese real estate developer Evergrande Group denied rumors that it may take a stake in Leshi Internet Information & Technology Corp, domestic financial news site finance.qq.com reported on Thursday.

The main listed business of the LeEco conglomerate plans to introduce new strategic investors, after six months of suspended trading on the Shenzhen Stock Exchange (SSE), according to media reports.

Evergrande and another Chinese conglomerate Wanda Group are likely to invest in LeEco to take advantage of its edge in the cultural and entertainment sectors, according to finance.qq.com.

The second-largest shareholder of LeEco, Sunac China, signed a cultural and tourism deal with Wanda earlier this year, and cooperation between the two may expand into more sectors.

Wanda said the company had no knowledge of the rumor, media reported on Thursday.

Since Jia Yueting, LeEco’s founder, left the company, some members of his team reportedly followed. For example, Liang Jun, CEO of Leshi Internet Information & Technology Corp, has delivered a resignation letter, the Beijing-based Securities Daily reported on Wednesday.

The company began a restructuring after Jia left in July. A new LeEco will likely embrace new investment funds, a source close to the company was quoted as saying in the financial daily.

Leshi Internet Information & Technology also denied the rumor late on Thursday, saying that the company has not introduced any new investors so far, according to an announcement the firm published on the SSE.