- Due to LeEco’s cash crisis, 11 Chinese banks might face overdue loan payments from LeEco, as Tencent Finance reports.
- By the end of June, 12 Chinese banks had lent a total of RMB 2.24 billion to Leshi Internet Information & Technology Corp. (300104.SZ), the publicly traded unit under LeEco. Of the 12 banks, only the Bank of Ningbo (002142.SZ) has received full payment of principal and interest from Leshi.
Why It Matters:
- The 11 Chinese banks are China CITIC Bank (601998.SS), Industrial Bank (601166.SS), China Zheshang Bank (2016.HK), China Construction Bank Corporation (601939.SS/0939.HK), Bank of China (601988.SS/3988.HK), Bank of Beijing (601169.SS), Ping An Bank (000001.SZ), HengFeng Bank’s Beijing Branch, Bank Of Jiangsu’s (600919.SS) Beijing Branch, Hua Xia Bank’s (600015.SS) Beijing Branch, and Bank of Tianjin’s (1578.HK) Fengtai Branch.
- In the midst of LeEco’s cash crisis, the market believes that it is difficult for LeEco to pay off all its loans. This is especially so of the RMB 2.24 billion loan made to LeEco’s unit, Leshi, and in addition the whole LeEco Group owes banks more money.
- Leshi announced on July 6 that its founder and chairman Jia Yueting has resigned as chairman of Leshi Internet but he will remain as the company’s controlling shareholder.