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Shares Plunge for China’s BYD, Geely
Investors mounted huge selloffs of shares in Geely Automobile Holdings Ltd. and BYD Co. this week, apparently over concerns about the profit prospects for both carmakers.
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Investors mounted huge selloffs of shares in Geely Automobile Holdings Ltd. and BYD Co. this week, apparently over concerns about the profit prospects for both carmakers.
On Wednesday shares in Geely fell 22% to HK$2.43 after the company warned its net income could plunge 50% this year. The company cited exchange losses with Russia, whose ruble has plummeted more than 40% in value in the past six months.
On Thursday shares of electric carmaker BYD sank as much as 47% during a wave of panic selling. Shares rallied late in the day to close at HK$25.05, down 29%.
BYD's management says it is not aware of a reason for the sharp decline. Analysts theorize the drop may signal lost confidence in the company's EV sales as the price of gasoline for conventional cars continues to fall. Sales of BYD's piston-powered cars also have weakened.
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