Date
17 December 2017
BYD has urged investors to ignore rumors surrounding the company, stressing that its business prospects remain sound. Photo: Bloomberg
BYD has urged investors to ignore rumors surrounding the company, stressing that its business prospects remain sound. Photo: Bloomberg

BYD dismisses ‘ridiculous’ rumors after shares tank

Chinese electric-vehicle maker BYD Co. (01211.HK) defended its business prospects after its shares plunged nearly 30 percent yesterday, the Wall Street Journal reported.

In a conference call late Thursday, company secretary Qian Li said BYD’s operations were normal and sought to dispel what he called rumors about the company, the report said.

Li described rumors circulating in the market about BYD—including suggestions that its founder and chairman had been arrested—as “ridiculous” and urged investors to ignore them.

He also dismissed talk of BYD having large exposure to the troubled Russia market, describing the company’s investment in that country as “very small”.

BYD saw its shares end at HK$25.05 in Hong Kong Thursday, after tumbling as much as 47 percent at one stage. In Shenzhen, the stock fell about 10 percent, the daily limit. 

Asked whether the price movement could be related to a selloff in shares by Warren Buffett’s Berkshire Hathaway Inc., Li said there was no sign that the US billionaire was considering a sale. 

Berkshire Hathaway owns about 9 percent stake in BYD.

Li dismissed talk that the Chinese government could be reducing its support for new-energy vehicles, saying BYD continues to see good order flow for them.

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RC

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