Cars

Buffett says BYD investment is 'right choice'

(Xinhua)
Updated: 2010-09-28 11:15

He is also scheduled to visit BYD's plants in the cities of Shenzhen and Huizhou on Tuesday and then leave for Beijing on Wednesday, where he will co-host with Bill Gates a charity banquet to meet about 50 wealthy Chinese.

His China trip will end in Changsha, capital of central China's Hunan Province, where he plans to visit BYD's electric bus production base.

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Wang Jianjun, a sales manager of BYD, said Buffett's China visit shows the tycoon's confidence in BYD.

China is the world's largest auto market, and it is grappling with oil shortages and air pollution. The Chinese government attaches importance to developing non-fossil-fuel-powered vehicles, as evidenced by a number of preferential government policies for electric car makers.

Huang Yonghe, chief analyst with China Automotive Technology & Research Center, said Buffett's China visit is expected to reaffirm his confidence in BYD and very likely he would increase his investment in similar sectors in China.

BYD's stock price has risen more than 20 percent on the Hong Kong Stock Exchanges over the past week, boosted by the news of Buffett's China visit. It added 4.4 percent Monday to close at $57.6 ($7.4).