BYD shares fell over 3.5% in Hong Kong on Monday. The stock reached a near two-year low of HK$76.70.
The sell-off followed reports from late last week that the European Commission plans to impose countervailing duties on Chinese hybrid vehicle imports. Hybrids represent a significant portion of BYD’s sales in the European Union.
The company’s stock has lost approximately 13% over the last ten trading sessions. Intense price competition and slowing demand continue to pressure China’s domestic market. Additionally, the partial removal of electric vehicle purchase tax exemptions is compressing industry margins.