August 12, 2022

Excellent Pix

Unlimited Technology

NIO Announces Proposed Secondary Listing in Hong Kong

By Sam Boughedda

Investing.com — On Monday, Chinese electric car company Nio Inc (NYSE:NIO) announced the proposed secondary listing of its shares in Hong Kong.

NIO shares have bounced Monday, rising 8% above Friday’s closing price.

The company will list its shares on the Main Board of The Stock Exchange of Hong Kong Limited, with its American depositary shares (ADSs), continuing their primary listing on the New York Stock Exchange.

NIO shares are expected to commence trading on the Main Board of the SEHK on March 10. The shares will be listed “by way of introduction,” meaning a portion of NIO’s existing shares will be available for trading in Hong Kong. The decision means the company won’t sell new shares or raise any money.

The move comes at a time of heightened regulatory risk for Chinese companies in both the US and China, providing a way to offset some of the risk of being delisted from U.S. exchanges.

Citi analyst Jeff Chung reiterated a Buy rating and $87 price target on NIO following the news, telling investors in a note that NIO’s Hong Kong listing will mitigate the political risks.

“We believe the market will react positively to the stock in the next 1-2 days, though share price movements thereafter are likely to reflect monthly NEV sales volumes,” explained Chung.

Related Articles

NIO Announces Proposed Secondary Listing in Hong Kong

Stocks fall, ruble dives as Russia sanctions hit world markets

Russia sanctions snarl flights, compound airline industry woes

Source News