Mercedes reports that sales in China are up by 52% in the first nine months of 2009.
This should tell you two things: (1) conspicuous consumption is alive and well in China and (2) the Chinese economy is humming along fast enough to create wealthy buyers.
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Tony, you missed the biggest move in Chinese auto sales. BYD symbol BYDDF, is up 88% and the stock value since Warren Buffet bought 10% of the company has gone up over 1,000%. I figure Warren bought about 225 million shares at about $1 a share. The stock is now over $11. Unfortunately I didn’t get in until it was at $3 but I’m not crying, my wife paid $9.
Now Barclays is jumping on to the band wagon.
SHENZHEN, Oct 23, 2009 (SinoCast Daily Business Beat via COMTEX) — BYDDF | Quote | Chart | News | PowerRating — Barclays PLC (NYSE: BCS | Quote | Chart | News | PowerRating) purchased 32.3275 million shares in the Chinese battery and automobile manufacturer BYD Co., Ltd. (SEHK: 1211) on the Stock Exchange of Hong Kong on October 16, 2009, the bourse disclosed lately.
The shares were priced at HKD 78.145 apiece, or HKD 2.526 billion in total. By comparison, Warren Buffet bought 225 million BYD shares last September for HKD 8 apiece and has gained book earnings of HKD 17.01 billion calculated at the closing price of HKD 83.6 apiece on October 22, 2009.
The high-price acquisition indicated Barclays’ optimism about the prospect of the new energy car industry, at a time when many countries are making supportive polices for new energy development in the face of conventional energy shortages, according to an analyst with Christfund Investment Information Ltd.