Former Leshi IPO committee members detained over troubled video content firm’s 2010 fundraising

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Xie Zhongping and Sun Xiaobo – lawyers previously hired by the China Securities Regulatory Commission to review and approve IPOs on the start-up board ChiNext – believed to be under investigation

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Leshi proposed renaming itself “New Le Shi Information & Technology” in September.Its parent company LeEco first ran into financial strife at the end of 2016, suffering from a severe capital crunch which founder Jia Yueting admitted had been caused by an over-aggressive expansion plan.

Daniel Renin Shanghai,Xie Yuin Hong KongandSummer Zhen

Published: 7:18am, 2 Nov 2017Updated: 7:18am, 2 Nov 2017

At least two former members of the mainland securities regulator’s initial public offering (IPO) review committee are believed to have been detained by police for investigation into possible wrongdoings related to the embattled Leshi Internet Information & Technology’s 730 million yuan (US$110 million) fundraising in 2010.

The probe is likely to exacerbate the difficulties already facing the video content company, founded by billionaire Jia Yueting.

Xie Zhongping and Sun Xiaobo, two lawyers previously hired by the China Securities Regulatory Commission (CSRC) to review and approve IPOs on the start-up board ChiNext, are now under investigation for alleged dereliction in assessing the listing application by Leshi, according to two sources close to the CSRC.

Neither lawyer could be reached while the regulator would not comment on Wednesday.

Leshi raised 730 million yuan in mid-2010 through an IPO, amid allegations that its earnings and operating details had been inflated.

In early January, Sunac China, the property group founded by Sun Hongbin, emerged as a white knight when he agreed to pay 15 billion yuan to buy stakes in Leshi and LeEco’s other subsidiaries. Photo: David Wong