BYD Parks Chip Unit IPO

What’s new: China’s largest producer of hybrid and electric vehicles BYD Co. Ltd. (002594.SZ) has terminated a plan to spin off its car chipmaking unit, citing a substantial investment in the business that will affect its balance sheet.

The decision comes seven months after China’s top securities regulator raised questions about whether BYD Semiconductor Co. Ltd. — which gets the majority of revenue from its parent — was capable of operating independently.