Chinese electric vehicle maker Nio Inc. is considering a third listing in China’s A-share market in addition to its planned listing in Hong Kong, cnEVpostreportedSunday, citing a report by the People’s Daily-run International Finance Daily.
What Happened: Nio’s peer XPeng Inc., whose shares debuted last week on the Hong Kong stock exchange in a dual primary listing, is also considering a listing in China's A-share market in the future, as per the report.
Xpeng CEO He Xiaopeng said in March that he bought shares in Nio during the latter’s toughest time in 2019 in order to avoid the failure of homebred Chinese EV companies.
Why It Matters: It was reported in March that the U.S. listed-Chinese EV trio of Xpeng, Nio and Li Auto Inc.LI has hired investment advisors for their Hong Kong IPOs. Xpeng is the first among the three companies to complete a dual-listing in Hong Kong.
The additional listings are expected to expand the investor base of these companies and also help them gain access to further capital as they operate in a cash-intensive industry. Additionally, it will serve to remove the overhang of a U.S. regulatory clampdown on U.S.-listed Chinese companies.
Price Action: Nio shares closed 0.2% lower in Friday’s trading session at $45.53.
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