China’s EV darling Nio turns to Hong Kong and Singapore amid US delisting risk – TechCrunch

Nio, an electric vehicle upstart from China, is planning to list its shares in Singapore, which will make the city-state the third facility where it trades amid tensions. Geopolitics between China and the US increased.

Nio speak on Friday that it was seeking a secondary listing of its Class A common stock “by referral” on Singapore Exchange Securities Trading Limited, a way to list issued securities on an exchange. other.

The company’s shares will continue to be listed and traded primarily on the New York Stock Exchange, where it launched. back in 2018. Earlier this year, Nio completed a secondary listing in Hong Kong.

The announcement comes after the US Securities and Exchange Commission added more than 80 companies to one list most Chinese companies are facing expulsion from US exchanges, including Nio and other tech giants such as microblogging platform Weibo, video streaming site Bilibili, e-commerce platforms and Pinduoduo, Tencent Music Entertainment (Tencent’s music streaming empire) and game company NetEase.

Li Auto and Xpeng, Nio’s two competitors in China, are also on the list.

The delisted watchlist represents a longstanding disagreement between accounting regulators in China and the US. In 2020, the Trump administration pass a bill requires more visibility in the books of foreign companies listed in the United States, focusing on the audit activities of Chinese entities. However, this policy is still not really good when countries do not want to transfer data of domestic enterprises for fear of national security risks.

A handful of Chinese tech companies have acted first by pursuing secondary listings well before they’ve been placed on the watchlist. The Hong Kong Stock Exchange has seen a wave of “list of hometowns“By giants like and NetEase, will help them attract home-grown investors who are more familiar with their businesses while hedging the risk of being kicked out of the US exchange.

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