(Yicai Global) Jan. 2 -- Shares in Leshi Internet Information and Technology hit the maximum daily increase allowed on China's stock market after the firm's controversial founder Jia Yueting struck a deal with investor Evergrande Group to end a major legal battle.

The Beijing-based company's stocks [SHE:300104] rose 10.04 percent this morning to reach CNY2.74 (USD0.4).

Leshi reached an agreement with the Shenzhen-based property giant on Dec. 31 to end all outstanding lawsuits between the two companies. Evergrande Health's 45 percent stake in Jia's Faraday & Future will fall to 32 percent following the deal and it will not invest further in the US-based new energy vehicle startup.

Evergrande Health invested USD860 million in setting up a Hong Kong joint venture with Faraday Future six months ago though relations soured after Jia burned through the funds in a mere three months and went back for more, according to a statement from the real estate firm. 

Editor: William Clegg