One of the world’s most famous billionaires, Warren Buffet, is known to own a car manufacturing company based in China. At the China-based BYD Co., Ltd., Buffet actually has a very significant role. However, just last Thursday, the share value of the Chinese automaker in question suddenly dropped so significantly without any clear reasons whatsoever. As a matter of fact, it has been the company’s biggest drop ever in a single day in Hong Kong. This has caused the company to lose $1.2 billion of its shares in total. As a result, emergency analyst meeting is something that the company cannot avoid right now.
Even though there are numerous rumors swirling around in regards to this drop in the company’s share value, analysts are still trying to figure out what the real reason behind this share value drop really is. It has been the lowest one ever since June last year. One possible reason, however, is the drop of the world’s gas prices. Taking the global oil price drop into consideration, most customers are likely to spend their hard earned cash on a fuel rather than electric vehicle these days, it seems.
During the trade on Thursday, the company’s shares, 9.1% of which belongs to the Buffett’s Berkshire Hathaway Energy Holdings Co., was closed at HK$25.05, which was lower by 28.8% than it was before. Heck, the value was even worse during the afternoon that day as it fell up to 47% in total.
According to reports, the Chinese company listed itself in the trade market back in the year 2002 and this drop has proven to be the biggest ever to happen within a single day ever since. As for the company’s shares listed in Shenzen, they have also fallen down, but only by 10% tops. To the Hong Kong Stock Exchange (HKSE), BYD claims that it has yet to figure out the real reasons behind such value drops.
