LeEco founder Jia Yueting defies order to return to China: reports

Despite China’s stock market regulator ordering LeEco founder Jia Yueting to return to China before the end of 2017 to deal with the financial woes of his Shenzhen-listed unit, there is little indication that Jia has complied, according to mainland Chinese media reports.

The China Securities Regulatory Commission (CSRC) last week posted a notice stating that Jia, who had built a technology empire that included electric cars, smartphones and a video-streaming platform, did not make good on a promise to provide interest-free loans to debt-laden, Shenzhen-listed Leshi Internet Information & Technology Corp, whose shares have been suspended from trading since April 2017. He was ordered to return to China by December 31.

On Sunday, Jia’s wife Gan Wei posted a microblog on Weibo stating that she has returned to China as ordered, and tagged her location as being in the Beijing Capital International Airport. Local media reports said Gan travelled back to the mainland alone, without Jia.

As of January 1, Jia’s whereabouts were unknown and LeEco could not be immediately reached for comment.

LeEco is the latest in a string of Chinese companies whose financials have come under scrutiny as the Chinese government strives to control systemic financial risks in the country, including capital flight when mainland companies acquire overseas assets. Several of China’s largest overseas deal makers, including property conglomerate Wanda Group, founded by Chinese billionaire Wang Jianlin, as well as Anbang Insurance Group, HNA Group and Fosun International, have all been affected, with the China Banking Regulatory Commission asking banks to provide information on overseas loans made to these companies.

For the past several months Jia has been based in the US and media reports said he has taken on the position as chief executive of Faraday Future, a Los Angeles-based electric car company that he backed financially.