(Yicai Global) July 9 -- Jia Yueting's aggressive business practices have caught up with Leshi Holding (Beijing) Co.'s listed affiliate Leshi Internet Information and Technology Corp. [SHE:300104] (LeTV). After a court froze 99 percent of Jia's equity in LeTV and he stepped down from its board, three public fund management firms with stakes in LeTV have downgraded their valuations of the company.

The China Post and Capital Fund Management Co. announced on the morning of July 8 that from July 7 the valuation of LeTV shares held by China Post funds would be adjusted to USD3.29 (CNY22.37) per share, a 27-percent decrease compared with CNY30.68 before trading of LeTV was suspended.

Harvest Fund Management Co. followed suit a few hours later, lowering the valuation of its LeTV shares to CNY22.37 apiece. E Fund Management Co. cut its valuation of LeTV shares by more than three daily trading limits to CNY22.05 per share.

The net value of these funds will be hit by the decline in LeTV valuations, meaning investors are not going to cash in as they had hoped.

As of the first quarter of this year, 39 public funds, including the China Post Fund, the Harvest Fund and the E Fund, held shares in LeTV. More fund companies are expected to lower their valuations of LeTV shares.