Geely Profit Warning Seen as Bad Omen for Other China Carmakers
- Shares of Geely, other chinese carmakers fall in Hong Kong
- Geely is barometer of China auto industry sentiment: Bernstein
This article is for subscribers only.
Geely Automobile Holdings Ltd., controlled by Volvo Cars owner Li Shufu, issued a profit warning that drove down its shares and those of other Chinese automakers as it sparked concern investors are underestimating the depths of the industry’s slump.
Shares of Geely, which said late yesterday first-half profit plunged an estimated 40%, dropped as much as 7.6% in Hong Kong on Tuesday to HK$11.24, the lowest level in almost six months. Great Wall Motor Co., Guangzhou Automobile Group Co. and Dongfeng Motor Group Co. also declined.