Tech firm LeEco pulled out of a deal to set up a Chinese property insurance company due to its weak financial condition, Caixin reported Aug. 8, citing a company executive.

LeEco and six other companies earlier agreed to establish Belt and Road Property Insurance Co. with a registered capital of 2.9 billion Chinese yuan. The tech firm agreed to invest 435 million yuan in the company through its unit Letv Investment Management for a 15% stake.

However, the decision faced backlash from LeEco creditors and suppliers seeking overdue payments from the company. An executive from the firm, who spoke to Caixin on condition of anonymity, said the company's senior management has decided to drop the plan as it does not have the capacity to make external investments.

The proposed property insurance company has yet to receive a license from the China Insurance Regulatory Commission.

As of Aug. 8, US$1 was equivalent to 6.70 Chinese yuan.