What’s new: Nio Inc. announced Thursday it has been given the green light to list by introduction in Singapore, making it the latest U.S.-traded Chinese company to look for other venues for its stock as the threat of being booted from American exchanges persists.
The electric-vehicle maker will issue an introductory document later this month. The Singapore-listed shares will be fully fungible with Nio’s American depository shares listed on the New York Stock Exchange.
The context: Nio is among more than 80 firms added on Wednesday to an expanding list of stocks that face expulsion from American exchanges. Its New York stock price plunged 15.2% on Thursday and was down 11.8% by midday Friday in Hong Kong.
Nio made its secondary listing in Hong Kong in March, also by way of introduction. Listing by introduction is a route open to companies whose shares are widely held and traded.
A long-running dispute between the Chinese and U.S. authorities over access to U.S.-listed Chinese firms’ audit papers grew more intense in 2020 when Washington passed a law that would ban trading of such companies’ stocks if their audit papers cannot be checked by the relevant body for three consecutive years.
While the two sides continue to negotiate, the threat of delisting now hangs over hundreds of Chinese firms.
Related: Chinese EV-Makers’ Deliveries Plunge as Lockdowns Hit Dealers, Plants
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)
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