Nio makes Hong Kong stock market debut without raising new capital


Nio’s et5 electric sedan is expected to begin deliveries in September 2022.

Nio

Shares of Chinese electric vehicle maker Nio began trading on the Hong Kong stock exchange on Thursday, after the company chose a quick path to listing that did not involve raising new funds.

This route, called an “introductory” listing, allowed Nio’s shares to begin trading less than two weeks after announcing its intention to list in Hong Kong. The stock closed at HK$158.90 on its first day of trading, compared to a close of $20.17 (HK$157.72) for its New York-listed U.S. depository shares on Wednesday.

U.S.-listed shares of Nio rallied to close around 12.2% on Wednesday, but were still down around 36.3% this year through Wednesday’s close.

Nio joins a growing list of U.S.-listed Chinese companies that have opted to list on the Hong Kong stock exchange in recent months, seen as a way to hedge against the risk of being delisted from U.S. exchanges in a context of growing US-China tensions. Two of Nio’s US-listed domestic rivals, Xpeng and Li Auto, both listed on the Hong Kong stock exchange last year.

Chinese ride-sharing company DiDi Global, under pressure from its home government, announced plans to delist from the New York Stock Exchange in December.

Xpeng and Li Auto chose more traditional routes for their Hong Kong listings, raising $2.1 billion and $1.5 billion respectively. But Nio, which ended the third quarter of 2021 with $7.3 billion in cash and raised another $1.7 billion in a New York market offering in November, didn’t. felt the need to raise additional funds with its Hong Kong business debut.

Nio will release its fourth quarter and full year 2021 results after US markets close on March 24.


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