BYD Stumbles on Hong Kong Exchange Following Warren Buffett Selloff
2022.08.31 20:26
BYD Stumbles on Hong Kong Exchange Following Warren Buffet Selloff
By Michael Elkins
Shares of the Chinese electric vehicle company BYD (OTC:BYDDY) stumbled Wednesday following reports that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) trimmed its stake in the company.
According to a filing on the Hong Kong exchange, Berkshire sold 1.33 million shares of BYD for about $47 million. Berkshire now owns 218.7 million shares.
“This is a common trend for investors starting to take cash from the market,” Yang Liu, Atlantis Investment’s chairperson and chief investment officer, told CNBC’s “Street Signs Asia” on Wednesday.
“Maybe we’ll see more.”
When asked about what this means for the Chinese electric vehicle market, Liu said Berkshire’s latest move could be “warning signs that the market may be [coming] to a big correction.”
“There is too much uncertainties and I think [Buffett] got a little bit nervous,” she said. “Maybe this recession in front of us for the U.S. economy and also a weaker Chinese consumption altogether brings down investors’ confidence to a larger scale.”
BYD was down almost 8% to $242.20 on the Hong Kong Exchange at the time of this report, after closing at $263 on Tuesday.
