Nov. 1 (NBD) -- In separate revaluation statements, 20 fund companies announced Tuesday that they lowered the valuation of shares of Leshi Internet Information and Technology Corp (Leshi). Plus two funds issuing similar statements last Saturday, it makes a total of 22 funds announcing the adjustment.

Most of these funds adjusted the valuation of Leshi shares to 7.82 yuan (1.2 U.S. dollars) per share. Given the stock's closing price of 15.33 yuan (2.3 U.S. dollars) before the suspension, the adjustment means a sharp drop of 49 percent in valuation of Leshi.

Previously, several former China Securities Regulatory Commission (CSRC) officials were under investigation, reportedly in relation to the listing of Leshi on the ChiNext, according to some media reports citing insiders.

NBD noticed that the reason of funds' adjustment lies not only in Leshi's repeated negative news, but also in its big decrease in revenue shown in its latest financial report. Leshi posted a revenue of 6.095 billion yuan (919.3 million U.S. dollars) for the first three quarters this year, down 63.67 percent compared to the same period of last year.

Jia Zhi, manager of TX Investment Consulting, told NBD that it was the second time in the second half of this year that fund companies adjusted the valuation of Leshi shares. The trading of Leshi stock has been suspended since April. And such adjustment indicates the fund companies' bearish views towards Leshi shares after the resumption of trading.

In 2010, Leshi, the video content unit of cash-strapped tech conglomerate LeEco, was listed on ChiNext, a NASDAQ-style board of the Shenzhen Stock Exchange. And in early 2014, the market value of Leshi once rocketed to 41 billion yuan (6.2 billion U.S. dollars), becoming the most valuable enterprise on ChiNext.

However, ever since it was listed, Leshi's financial status has been questioned. According to Leshi's announcement and public information, for the 6 years since its listing, Leshi has raised over 25 billion yuan (3.8 billion U.S. dollars) via IPO on the secondary market, private placement, stock pledge and other channels.

Email: gaohan@nbd.com.cn