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June 30, 2011

BYD shares jump on China debut despite weak earnings

Shares in Chinese carmaker BYD have risen sharply on their debut on the Shenzen stock exchange, despite the company reporting a drop in profits.

BYD shares jumped as much as 39% to 25 yuan, compared with the listing price of 18 yuan.

The company had raised 1.42bn yuan ($219m; £136m) from the share issue to fund its expansion plans.

On Wednesday, BYD reported an 84% dip in profits for the first quarter compared with a year earlier.

The car and battery maker said it made a net profit of 266.7m yuan in the first three months of the year, down from 1.7bn yuan a year ago.

Billionaire investor Warren Buffett's company MidAmerican Energy holds a 9.9% stake in BYD.

Source: BBC
www.bbc.co.uk

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