New | BYD shares rebound after carmaker denies Buffett sell-down plans

Shares in BYD staged a recovery on Friday morning after the maker of electric vehicles scotched rumours that investor Warren Buffet was planning to reduce his stake in the company.

BYD shares had had plunged as much as 46.9 per cent on Thursday, after investors responded to market speculation about the Shenzhen-based carmaker.

Shares of the BYD bounced 11 per cent when the market opened on Friday, and were trading up 15.8 per cent at HK$29 by mid-morning. The Hang Seng Index gained 1.2 per cent.

BYD has “communicated and confirmed” with Berkshire Hathaway – through which the Buffett holds the company’s shares – and was told it has no “present intention to reduce shareholdings”, it said in a filing to the Hong Kong stock exchange on Friday morning.

However, BYD but did not give a reason for the plunge in its shares. The stock closed at HK$25.05 on Thursday, down 28.8 per cent.

Addressing speculation over its business in Russia, the company said its exports to the country were less than US$1 million and that reports claiming it had suffered substantial exchange losses there were untrue.