SHANGHAI—China’s securities regulator has formally ordered the founder of indebted tech conglomerate LeEco to return to China and sort out a mounting debt pile linked to his firms, ramping up pressure on the head of the embattled entertainment-to-autos group.
The Beijing branch of the China Securities Regulatory Commission (CSRC) said in a notice late on Monday that LeEco chief executive Jia Yueting must return to China before Dec. 31 to “fulfill his obligation” and protect investors’ rights.
LeEco, an entertainment, electronics, and electric vehicles group founded by Jia, has struggled to pay its debts after rapid expansion into multiple sectors sparked a cash crunch, a plunge in the shares of a listed unit, and led to multiple defaults.
The watchdog said it had previously asked Jia to return to China in September, but since then had not seen any action taken by the LeEco founder to comply. It did not specify where Jia was, although he has business interests in the United States.
“Firms you control owe huge amounts to listed companies, which has not yet been returned,” the CSRC said. “This behavior seriously harms the legal rights of listed firms and the personal interests of a wide range of investors.”
