Beijing-based online video provider Leshi Internet Information and Technology Corp, commonly known as LeTV, on Monday denied it was the subject of a regulatory investigation.
The comment followed a report that the China Securities Regulatory Commission (CSRC) had asked about LeTV's continuous falling profitability. The inquiry came in a notice that the CSRC sent to LeTV on July 10.
The report cited an unidentified source as saying that undisclosed internal transactions probably led to LeTV's huge losses for minority shareholders. LeTV stated on July 21 that the losses were the main reason for declining operating profit in 2014.
LeTV said that the news report was misleading and contained false information, and it added that the notice it had released on July 21 met disclosure requirements.
Shares of LeTV's listed arm on the Shenzhen bourse fell by the daily trading limit of 10 percent to 45.15 yuan ($7.27) on Monday, nearly half price of its peak.
