BYD surges on its Shenzhen trading debut
Warren Buffett backed Chinese automaker BYD shares surged on its Shenzhen trading debut yesterday over speculation it may benefit from government funding for electric-vehicle production. The stock closed 41 percent higher at 25.45 yuan.
The Chinese government plans on announcing to invest 100 billion yuan ($15 billion) to assist companies to produce alternative energy vehicles.
“BYD will be one of the first companies that will benefit by incentives like this,” said Vivien Chan, a Hong Kong-based analyst at SinoPac Securities Asia Ltd. “Investors’ bet on the incentives are helping pushing up BYD’s shares.”
On a down note, BYD reported that its profits plunged 84% for the three month period that ended March 2011.
– By: Omar Rana
Source: Bloomberg
