Chinese electric-vehicle maker
BYD
said it’s working on a plan to buy back shares as it tries to please shareholders.
In a filing on Sunday, the Warren Buffett-backed company said it would “formulate a reasonable and feasible share repurchase plan and implement share buybacks based on market conditions,” without specifying an amount, The Wall Street Journal reported. In December, the company proposed buying back around $30 million in shares.
BYD overtook Elon Musk’s
Tesla
as the biggest maker of EVs in the fourth quarter. But competition in the sector is still intensifying, with many manufacturers cutting prices in the past year. BYD’s Hong Kong shares fell 1.9% on Monday. Its onshore China shares gained 1.3%. U.S. markets were closed for the Presidents Day holiday.
BYD’s mention of buybacks came after the Chinese government asked companies to improve their investment value. The world’s second biggest economy is struggling to pull out of the slump caused by extended Covid-19 lockdowns that were lifted substantially later than in the rest of the world. BYD also said it would introduce several luxury vehicles this year.
Hong Kong’s
Hang Seng Index closed down 1.1% Monday. Other EV makers also fell.
NIO
declined 0.8%.
XPeng
dropped 1.6%, and
Li Auto
retreated 1.5%. Geely Automotive finished 2.3% lower.
Write to Brian Swint at [email protected]
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