Shareholders sell $135m in BYD stock

Six key executives and other shareholders of BYD (002594.SHE, 1211.HKG), the Chinese car and battery maker, have sold company shares worth US$135 million in the last month, signifying the firm’s gloomy growth prospects, The Wall Street Journal reported. About 2.3% of BYD’s total outstanding stock has been sold at prices ranging from US$2 to US$2.8 between July and August, according to data from the Shenzhen Stock Exchange. The stock exchange data show that BYD executives alone sold 13 million A-shares combined for a total of US$28.9 million. Reasons for the sale were not disclosed. BYD, in which Warren Buffett’s Berkshire Hathaway (BRK.A.NYSE) has a 9.6% stake, projected a net profit decline of approximately 75%-95% for first six months of this year. “In the next two years, BYD will be plagued by lackluster profit growth and a heavy financial burden,” UOB KayHian analyst Ken Lee said.