(Yicai Global) April 2 -- Shares in Leshi's listed arm dropped by the daily trading limit today after founder Jia Yueting confirmed last night that regulators may force the troubled Chinese technology company to delist. 

Leshi Internet Information & Technology [SHE:300104] lost more than 5.8 percent to close at CNY2.74 (41 US cents), pulling back from an almost 10 percent slump at the morning open.

Trading of the Beijing-based firm's stock faces suspension as its net assets were estimated to be in the red last year. Such firms face mandatory delisting if their situation does not improve, Jia said in a statement. 

Jia also revealed that he had reduced his holding in the firm by 87.9 million shares, or 2.1 percent, over the last nine months to pay off debts. He still holds a 23.5 percent stake and remains the largest shareholder though most of these shares are frozen due to legal proceedings. 

Editor: William Clegg