BYD Sinks as Buffett’s Stake Sale Fuels Fears of More to Come
- Stock falls as traders worry Berkshire may further trim stake
- Chinese EV maker’s first-half profit jumped despite lockdowns
BYD shares plunged as much as 13% in Hong Kong early Wednesday.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Traders rushed to sell BYD Co. after Warren Buffett’s Berkshire Hathaway Inc. trimmed its stake in the Chinese electric vehicle maker, fearing that the legendary investor may be gearing up for an eventual exit after more than a decade as the company’s most notable backer.
BYD shares plunged 7.9% in Hong Kong on Wednesday, the most in seven weeks and the worst performance on the benchmark Hang Seng Index. The selling followed Berkshire’s filing to the exchange late Tuesday notifying that the firm reduced its holding of BYD’s Hong Kong-listed shares to 19.92% from 20.04% on Aug. 24.