The Warren Buffett-Berkshire Hathaway backed Chinese automaker BYD Co Ltd denied a recent news report that the company is planning to sell new traded shares in Hong Kong's bourse. According to Veronica Jiang when asked by Reuters, "I've checked and we don't have such a plan." Bloomberg broke the news quoting two unnamed sources last Friday saying that BYD planned to offer shares on the Hong Kong bourse with as much as 20% of its new shares equivalents.
The Chinese automaker closed with share values down by 8% last Friday lagging a 0.4% loss in Hang Seng's Index. Overall, BYD has lost nearly US$2 billion in value since Buffett purchased its shares.
Berkshire opted to invest in BYD because of its battery technology, described by former Berkshire executive David Sokol called a breakthrough technology. BYD F3 was China's best-selling car brand in both 2009 and 2010 but has faced many issues from that time.
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