Date
21 October 2018

BYD gets burst from e-taxi orders

Electric-car maker BYD Co. Ltd (01211.HK) and Geely Automobile Holdings (00175.HK) took opposite turns in Wednesday’s trading session. BYD headed up more than 1.1 percent on news of orders from Taiwan while Geely was down 3.4 percent as Goldman Sachs announced plans to offload its shares in the Hangzhou-based company.

Hong Kong media reported on Tuesday that Goldman wants to sell its full 8 percent stake in Geely at a discount of up to 7.03 percent to that day’s closing price. The investment bank aims to raise up to HK$2.45 billion (US$315 million) by selling 580 million Geely shares, within the price range of HK$4.1 to HK$4.23.

Analysts said the move to offload the stock is reasonable given that Geely has risen nearly 30 percent in the last three months.

Meanwhile, BYD has received an order from Taiwan for more than 1,500 e6 taxis in what could be the biggest order for the group outside Shenzhen, its home base.

But Great Wall Motor (02333.HK) is still the best performer in car sector so far this year, rising 81.2 percent in the year to date. BYD is second with an increase of 64 percent and Brilliance China Automotive (01114.HK) third with 26.4 percent growth.

– Contact the writer at [email protected]

SK

 

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