BYD - stock slips on Buffett concerns
- Michael Stocker
- Jul 13, 2022
- 1 min read
Updated: Jul 14, 2022
Disclaimer - Nothing in this post is financial advise
Shares of e-car manufacturer BYD has lost over 14 percent on the market yesterday. After rumors that star investor Warren Buffett wants to sell his shares, concerned investors.
BYD shares plunged almost 14 percent yesterday, Tuesday after a short position appeared in the Hong Kong clearing system. The short position corresponds to Warren Buffett's stake in BYD with 20.49 percent. "Only Berkshire would have that many shares as a single investor," said Steven Leung, executive director at investment bank UOB Kay Hian.
Until yet, Berkshire Hathaway did not respond to any inquiry. Also, Citibank, through which Buffett had bought most of his BYD stock, did not provide any statement yet.
Even if the conjecture has not yet been confirmed, it has caused great uncertainty for investors. Shares of BYD slipped to under 262 Hong Kong dollars (HKD) after the news came out. However, bullish investors stepped in and bought shares which caused the price to close at about 270 HKD. It is now important that shares hold current levels to not generate a sell signal for investors.
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