BYD Sinks Amid Speculation Warren Buffett May Cash Out

BYD’s Hong Kong-traded stock reached a record high in June after nearly doubling from a March low.

(Bloomberg) — BYD Co. shares sank the most in nearly two years after a stake matching the size of Berkshire Hathaway Inc.’s position in the Chinese electric-car giant appeared in Hong Kong’s clearing system, fueling speculation that Warren Buffett’s company may be selling its holdings.

The 20.49% stake — identical to the size of Berkshire’s last reported position in Hong Kong as of December — entered the Central Clearing and Settlement System (CCASS), according to exchange data as of Monday. While there are many reasons a stake might appear in the system, such moves are often seen by traders as precursors to sales because shares must enter CCASS before transactions can be settled.