BYD Co., the Chinese carmaker partly owned by Warren Buffett’s Berkshire Hathaway Inc., rose to a 10-month high in Hong Kong, gaining for a second day, after China said it will encourage use of alternative energy vehicles.
BYD, China’s leading developer of electric vehicles, climbed 2.2 percent to HK$23.65 as of the midday trading break in Hong Kong, poised for its highest close since March 5. The gain follows a 1.3 percent advance the previous day.
China’s cabinet said at the weekend that it will take measures to ease traffic congestion with a goal of public transport accounting for 60 percent of all motor vehicle use in towns and cities. As part of the plan, the government will encourage usage of alternative energy vehicles in the public transportation system, potentially benefiting BYD which is developing electric buses and taxis.
Nomura Holdings Inc. yesterday upgraded BYD to a buy from neutral, with a target price of HK$30 from the previous HK$16, according to data compiled by Bloomberg.
Separately, BYD won an approval from the European Union to sell its electric buses, the company said in a statement yesterday. The approval allows BYD to sell the buses in all EU member states without the need for individual national permission, it said.