BYD A-shares limit up after report
BEIJING: BYD's yuan-denominated A-shares went limit-up on Friday after its chairman told local media Warren Buffett had no plan to cut his stake in the Chinese automaker.
BYD, in which Buffett's Berkshire Hathaway Inc holds a 9.9 percent stake, rose by its 10 percent daily trading limit shortly after market opened, vastly outpacing a 0.2 percent climb in the benchmark index.
The surge came after BYD chairman Wang Chuanfu dismissed market rumors of the possibility of Buffett cutting his stake in the company in an interview with the China Securities Journal.
"Buffett has no plan currently to slash his stake in BYD," Wang told the newspaper.
BYD jumped more than 40 percent on its Shenzhen debut on Thursday as investors bet on a strong outlook for the company's fledgling electric car business.
Its Hong Kong shares have however fallen more than 42 percent so far this year, hit by worries over BYD's slowing auto sales and a lack of star models.
Copyright Reuters, 2011
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