Many were lured by the idea of getting in early — a real desire in start-up-mad China — and Mr. Jia’s promise
that he or his investment vehicles would buy back the shares at a generous rate of return if the businesses did not go public.
When LeEco also began selling investment products online, Mr. Li snapped them up, even though the company said little about where the money would go.
Venturing into other corners of China’s financial system, LeEco has raised $2.4 billion since last
year by selling shares or debt convertible into shares in its various privately owned affiliates.
Economists worry that Chinese companies are borrowing too much money outside the scrutiny of regulators
and planting too many potential debt bombs in the corners of China’s financial system.
Here’s How a Chinese Tech Firm Borrowed $2.1 Billion in a Hurry -
By RYAN McMORROWJUNE 3, 2017
When a Chinese tech company with global ambitions began to run short of cash last year, it sought billions of dollars from new investors.