Business-minded Li has been investing in FDG Electric Vehicles shares since 2010. (Photo : Want China Times)
Hong Kong property mogul Li Ka-shing recently made the rounds as he placed a whopping total of HK$342 million, or roughly $44.1 million, on a minor stake in FDG Electric Vehicles Limited, an automobile company based in Hong Kong.
Business-minded Li has been investing in FDG Electric Vehicles shares since 2010. His recent deal increased his total shares from 743 million to 1.593 billion--more than 4 percent of the company's total capital.
On the other hand, Miao Zhongguo, deputy chair of FDG Electric Vehicles, split 800 million shares between Li's Lucky River Holdings and Lo Ka-shui for a total amount of HS$368 million ($47.46 million).
Lo Ka-shui, another reputed Hong Kong tycoon, bought 57 million FDG Electric Vehicles shares for HK$26.22 million ($3.38 million). He is the chairman of the board as well as the managing director of Great Eagle Holdings.
Due to the recent investments placed on the company, the price of a FDG Electric Vehicles share went up at HK$0.6, a 25-percent increase, on Sunday, Aug. 17.
Li and Lo's decision to place a significant amount of money on the company has made experts scratch their heads since FDG Electric Vehicles has been registering annual losses since 2011.
In an interview with Shanghai's National Business Daily, Lin Jiaqi of Redford Securities shared that investing in electric vehicles shares is still an attractive prospect given the dwindling number of energy resources. It doesn't matter if electric car manufacturers such as FDG Electric Vehicles and even Tesla are experiencing massive annual losses.
Despite this, Lin advises against making such investments since there are too many risks and long-term uncertainties involved. It's still a huge gamble, even for tycoons like Li and Lo.
