Tencent exec likens LeEco to a “Ponzi scheme” as its parent company takes a fall

Leshi announced on Tuesday that it would apply a three-month-old trade suspension order for its stock for another three months as it works to recover from declining membership of its streaming media service.

Its subsidiary, electronics manufacturer LeEco, is certainly struggling to a greater extent at the moment as its brash once-CEO, Jia Yueting, is under a personal asset freeze. The company, needless to say, is debt-ridden to an extreme and creditors want their money back. Fellows in the industry are taking notice.

“[LeEco] is obviously a Ponzi scheme. You don’t belong in the investment market or entrepreneurial world if you can’t see that,” wrote Tencent co-founder Zeng Liqing in a post on his company’s own WeChat social medium.

The post was “liked” by chairman Pony Ma Huating and top venture capitalist Xu Xiaoping.

Sun Hongbin, though, provided a counter in his own WeChat post. The chairman of Sunac Holdings, a property firm that recently lent ¥15 billion to LeEco, is supporting its former leader.

“Jia is still young. We should support [his] entrepreneurial spirit,” Sun posted.

The Sunac exec is in the running to take over the chairman position of Leshi as well, a spot vacated by Jia.

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Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.