Court freezes part of LeEco founder assets

Cash-strapped Chinese internet company LeEco is facing another blow, with 1.24 billion yuan ($183 million) in assets belonging to its founder Jia Yueting and three affiliated companies being frozen by a court.

The incident highlights that LeEco's cash crunch is far worse than previously expected and is likely to further weigh on the business of its listed video-streaming unit Leshi Internet Information and Technology Corp, analysts said on Tuesday.

Shanghai High People's Court made the ruling after a China Merchants Bank branch applied for a property preservation order in June to block the 1.24 billion yuan of assets owned by Jia, his wife and three affiliated companies.