BYD tumbles over 11% after Berkshire Hathaway cut stake for first time in 14 years, other automakers also see sell-off
COMPANY NEWS STOCKS
BYD tumbles over 11% after Berkshire Hathaway cut stake for first time in 14 years, other automakers also see sell-off
COMPANY NEWS STOCKS

BYD tumbles over 11% after Berkshire Hathaway cut stake for first time in 14 years, other automakers also see sell-off

 

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Shares of Chinese electric vehicle maker and power battery producers BYD Company tumbled more than 11% to hit HK$229 after a stock exchange filing showed that Berkshire Hathaway cut stake in BYD for first time in 14 years. BYD’s Shenzhen-traded shares dived as much as 6% to 284 yuan per share.

Berkshire Hathaway, owned by legendary US investor Warren Buffett, sold 1.33 million of BYD Company’s H-shares on August 24, at an average price of HK$277.1, to cash out HK$369 million, according to a filing to the Hong Kong Stock Exchange. After the sale, Berkshire Hathaway’s stake in BYD Company declined to 19.92% from previous 20.04%, showed the filing.

It marks Berkshire Hathaway’s first cut in its stake in BYD since it spent $230 million buying 225 million shares of BYD Company at HK$8 per share in September 2008.

Other automakers are also slumping amid dampened market sentiment towards the sector. In Hong Kong Great Wall Motor is sliding 4.4%, GAC Group down 3.8%, Geely Auto down 3.6%, Li Auto down 2.3%, Xpeng Motors falling 1.7%. In the A-share market, an index tracking the sector compiled by Wind Information is sliding 4.4%, making it one of the worst-performing sectors.