Mr Wang's reduction is to make way for Warren Buffett

Securities Times Wu Jiaming "selling shares of BYD's H shares of about HK $280 million" has a new story. According to BYD, the reduction has been absorbed by the company's existing foreign institutional investors, and promises to hold for a long time perhaps through "Warren Buffett", BYD (01211.HK) The car and battery maker became more widely known.　　Interestingly, Mr Buffett's founder and president, Mr. Wang, who sold all of his 11.2 million H shares at HK $25 a share, is not only a question of the market, but it is interesting to see that the company has been bullish on BYD for several times.　　The shares of BYD yesterday appeared to have been affected, with a gain of more than 4% per cent, but a "dive" in the afternoon, which ended up with a green plate, reported 26.7, down 0.37%. BYD: Reduction is the demand of the regulatory authorities in fact, as early as last week, the market has been a "mysterious person" BYD sold shares of the company to cover about HK $280 million. According to the information released by HKEx, the "mysterious figure" is BYD President Wang. According to the data, Mr Wang's 11.1777 million shares, averaging HK $25 per share, and a discount of about 10% on the closing price of the company on May 13, dropped from 1.97% to 0, and the placement was his first reduction in shares.　　However, Mr Wang still holds 570 million shares in BYD, accounting for 27.8% of total equity. The market is divided, the reporter interviewed a number of analysts. One of Hong Kong's first-China securities analysts said Mr Wang's reduction could be for several reasons: first, it thinks BYD's stock price is too high, and the second is that it may need cash.　　Because the HKEx has stipulated the performance announcement before and after the listed company executive cannot buy and sell the stock, therefore has to present in the current, also shows the high level sees the company performance prospect. BYD's 2008 Annual report, published in April, was not "ideal", with net profit of about 1.02 billion yuan, the worst in nearly 3 years.　　It is noteworthy that by the end of 2008, BYD held the cash and cash equivalent of about 1.7 billion yuan, and at the end of 2007, this figure of about 5.5 billion yuan, the decline of nearly 70%. BYD responded yesterday that the reduction was mainly at the request of the domestic regulatory authorities. As a result of the regulatory process, Mr Wang's selling of H shares helped regulators to pass Buffett's deal as soon as possible. At the moment, BYD is still awaiting approval from the mainland government to offer 225 million shares to Warren Buffett's US-China energy.　　According to BYD, Mr Wang's holdings are now absorbed by BYD's existing foreign institutional investors and have pledged to hold them for a long time. Buffett insists that Mr. Buffett and his team are interested in the new energy industry, and that last year Mr Buffett's partner Munger proposed and advocated for BYD. Earlier this month, Mr. Buffett's BerkshireThe company's shareholders ' meeting, attended by people from BYD, and the car that produced it, showed that the car was a success and Buffett said he would insist on holding BYD's shares. According to statistics, last September, Buffett injected 1.8 billion U.S. dollars to buy BYD shares issued 225 million shares. So far, BYD has risen from the 8.4 Hong Kong dollar to the current 27 Hong Kong dollar, up more than 200% per cent.　　BYD's share price has almost doubled since April this year. The agency's cautious view of the bank's report yesterday indicated that the reduction was mainly due to domestic regulatory requirements and should not be a concern for the company's prospects.　　The unit is currently valued at a higher price, and believes that the impetus for the short-term gains is mainly in the production of car batteries for European and North American carmakers, but that it will not bring a very lucrative profit to the company in 2009 years, thus maintaining a "sell" rating. On the other hand, Morgan Stanley raised its target price of BYD's shares from HK $9.55 to HK $16.5, and this year and next, earnings forecasts for each share rose 27% and 28% to maintain a "reduction" rating. Morgan Stanley said BYD's share price was ideal in April, but it is not attractive at the moment, boosted by recent car demand, improved handset sales and the news of Buffett's stake.