NIO to Make Secondary Listing on Hong Kong Stock Exchange

Electric vehicle (EV) manufacturer NIO plans to make a secondary listing on the Hong Kong Stock Exchange (HKEX). Currently listed on the New York Stock Exchange (NYSE), the Chinese EV maker seeks additional capital to fund expansion plans and increase visibility among Asian investors.

NIO believes that the HKEX secondary listing will enable access to a large pool of capital in Asia, particularly Hong Kong and Mainland China. This move also helps the company mitigate the risk of increased regulatory scrutiny and trade tensions between the United States and China.

Trading in American Depository Shares

NIO will trade its secondary listing in the form of American Depository Shares (ADSs) on the HKEX under the ticker symbol “NIO.” The company anticipates completing the secondary listing in the second quarter of 2022. NIO will maintain its NYSE listing, and the secondary listing will not affect existing shareholders.

Aligning with Chinese Government Objectives

NIO’s decision to pursue a secondary HKEX listing follows a trend of Chinese companies seeking to capitalize on the large pool of capital available in Asia. Many Chinese companies opt to list on domestic exchanges, where a larger pool of investors familiar with their businesses is willing to invest. The listing aligns with the Chinese government’s efforts to promote domestic EV industry development and boost Hong Kong’s capital market.

Ambitious Expansion Plans

NIO’s ambitious expansion plans include rapidly increasing production capacity and delivering 100,000 vehicles this year. The company also intends to expand its product line and enter new markets, such as Europe and North America.

In conclusion, NIO’s secondary HKEX listing aims to raise additional capital to fund expansion plans and increase visibility among Asian investors. By tapping into the large pool of capital available in Asia, particularly Hong Kong and Mainland China, NIO follows a growing trend of Chinese companies seeking to capitalize on Asian markets. This move aligns with the Chinese government’s efforts to promote the domestic EV industry and bolster Hong Kong’s capital market development.