Securities watchdog investigates Leshi, Jia Yueting

Shenzhen-listed Leshi Internet Information and Technology Corp announced on Monday that the company and its largest shareholder Jia Yueting received the notification of investigation from China Securities regulatory Commission (CSRC) on Friday and Monday, respectively.

The CSRC decided to investigate Leshi and Jia because they are suspected of illegal information disclosure and other violations.

Leshi said in the announcement that during the probe period, the company and Jia will actively cooperate with the investigation work and strictly comply with the regulator's requirements to fulfill the obligation of information disclosure.

Jia holds 23.47 percent stake of Leshi. The company has been suspended since Friday.

In the first quarter of this year, Leshi's revenue was 128.88 million yuan, slipping by 70.54 percent year-on-year, according to the company's financial report.