The BYD stock split in early June 2025 occurred at a ratio of 3:1, meaning that investors received two additional shares for each share held. For every 10 existing shares, 20 new bonus shares were credited, tripling the number of shares an investor holds. Consequently, the share price was mathematically reduced to a third.
Understanding and Impacts of the Stock Split
It is important to understand that the overall value of an investor’s share in the company does not change due to the stock split. The market value remains the same; only the number of shares and the price per share adjust. This measure corresponds to a capital operation from retained earnings and reserves, in which bonus shares are issued.
Technical Delays
This split caused confusion for many investors: the optical reduction in price visibility was immediate, but in many portfolios, the new shares have not yet been fully credited. This is due to the complexity of the technical settlement through international custodians, which can take up to seven weeks – by the end of July 2025, all bonus shares should be credited to the portfolios.
Important Points for Investors
- No Change in Company Ownership: Despite having more shares in the portfolio, the ownership ratio remains the same.
- Price Adjustment: The price per share mathematically drops to a third of the previous value.
- Delayed Credit: The actual crediting of additional shares occurs with a delay (until approximately the end of July).
- Tradeability: Until the full crediting, these bonus shares cannot be traded.
- Portfolio Checking: Investors should regularly check their portfolios and inquire with their brokers if the crediting is missing.
Overall, this stock split represents a typical capital measure to make trading BYD shares more attractive (through lower unit price) without changing the value for shareholders. Investors should remain calm and wait for the complete implementation by their deposit banks.
In summary: The BYD stock split nominally increases the number of shares held threefold at the correspondingly adjusted price; economically, investors remain unchanged in their stakes – however, they should anticipate a delay in the actual crediting.