Nio, China’s EV darling, turns to Hong Kong and Singapore amid US radiation risk – TechCrunch
Nio, an EV upstart from China, plans to list its shares in Singapore, which will make the city-state the third base where it trades as geopolitical tensions between China and the United States escalate.
Nio said on Friday it was seeking a secondary listing of its Class A ordinary shares “by way of IPO” on the Singapore Exchange Securities Trading Limited, a way to list securities already outstanding on another exchange.
The company’s shares will continue to be primarily listed and traded on the New York Stock Exchange, where it debuted in 2018. Earlier this year, Nio completed a secondary listing in Hong Kong.
The announcement came after the U.S. Securities Exchange Commission added more than 80 companies to a list of mostly Chinese firms at risk of expulsion from U.S. stock exchanges, which includes Nio and other tech giants like the microblogging platform Weibo, video streaming site Bilibili, e-commerce platforms JD.com and Pinduoduo, Tencent Music Entertainment (Tencent’s music streaming empire), and gaming company NetEase.
Li Auto and Xpeng, which are Nio’s rivals in China, are also on the list.
The write-off watch list represents a longstanding standoff between accounting authorities in China and the United States. In 2020, the Trump administration passed a bill requiring more visibility on the books of foreign companies listed in the United States, focusing on the auditing practices of Chinese entities. But the policy has not been welcomed by countries reluctant to hand over data from their local businesses, fearing national security risks.
A handful of Chinese tech companies acted preemptively by pursuing secondary listings long before they were placed on the watchlist. The Hong Kong Stock Exchange has seen a wave of “return listings” by giants like Alibaba, JD.com and NetEase, which would help them attract domestic investors who know their business better while protecting against the risk of be expelled from US stock exchanges. .