Shares of BYD Co Ltd, the Chinese automaker backed by US billionaire Warren Buffett, surged as much as 46 percent on its Shenzhen market debut on Thursday, bucking bearish market sentiment after raising $219 million in its IPO. The jump surprised some analysts who had expected China's sixth-biggest carmaker by sales to make a weak debut after it raised a third less than what it originally sought in the Shenzhen offering.
The company, in which Buffett's Berkshire Hathaway Inc has a 9.9 percent stake, reported disappointing quarterly results on Wednesday, but analysts said investors were betting on the Shenzhen-based firm's green technology business. "People are still quite optimistic on the prospect" of BYD's battery business, said Zhang Yu, an analyst with AJ Securities in Shanghai. By 0500 GMT, the stock was trading at 25.46 yuan, up 41 percent, while the benchmark Shanghai Composite Index was up 1.3 percent and the Shenzhen index gained 1.2 percent. The shares rose to as high as 26.19 yuan, compared with its IPO price of 18 yuan. BYD shares in Hong Kong rose 4.4 percent on Thursday, although they are down nearly 40 percent so far this year, compared with a 4.2 percent drop for the benchmark Hang Seng Index.