BYD shares surge on Shenzhen debut

Shares of Chinese auto maker BYD Co (1211.HK, 002594.SZ) rose as much as 46% on the company’s Shenzhen debut on Thursday, despite bearish market sentiment following its US$219 million initial public offering, Reuters reported. BYD shares were traded at RMB22 (US$3.40) each at the open, but surged as high as RMB26.18 (US$4.05), compared with an IPO price of RMB18 (US$2.79) per share. The Shenzhen listing of BYD, which is backed by US billionaire Warren Buffett, comes amid a record number of shelved or canceled IPOs due to global market volatility, as well as growing scrutiny of Chinese companies listed in North America over accounting scandals. In contrast to its impressive listing, BYD’s latest quarterly results revealed an 84% fall in net profits, largely due to shrinking demand in China’s automobile market and the lackluster performance of its handset component business.