Asian markets: Goldman pumps up Geely stock

Updated

Stocks in Asia were mixed Wednesday, with several markets still closed for the holidays, including those in Japan and Indonesia. Hong Kong's Hang Seng Index closed down 0.5 percent to close at 21,596 despite some fantastic performers.

Trading was extremely active in Geely Automobile Holdings Ltd., which surged 19 percent on the news that a fund managed by Goldman Sachs Group Inc. will invest $334 million in the Chinese car company. Investors may be hoping for success on the scale enjoyed by Chinese electric carmaker BYD Co. Ltd. after a major investment by Warren Buffett last year led to a five-fold increase in the company's value. And it may be a good bet: according to China Daily, Geely is planning to double the number of cars it produces to 685,000 in the hope of cashing in on increasing demand from China's expanding middle class.

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