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