NIO Stock Gains 3% as EV Maker Successfully Lists on Singapore Exchange

NIO ES6 electric SUV semi-autonomous car on display near Chinese automobile manufacturer NIO software development office in Silicon Valley
Source: Michael Vi / Shutterstock.com

Shares of NIO stock are spiking higher this morning following Nio’s successful listing on the Singapore Exchange. On the exchange, Class-A shares began trading at $16.90 and climbed as high as $20.29. That price is nearly 22% higher than yesterday’s close of $16.66 on the New York Stock Exchange (NYSE).

This Chinese EV company announced its intention to list on the Singapore Exchange earlier in May, in light of global tensions. Now NIO stock is tradable on three different exchanges: the NYSE, the Singapore Exchange and the Hong Kong Stock Exchange.

Let’s get into the details.

NIO Stock in Focus Following Singapore Exchange Listing

The shares of NIO listed on these three exchanges are all the same. However, small price differences between the three exchanges are possible. That can create opportunities for traders to capitalize on arbitrage.

Nio was recently added to the Holding Foreign Companies Accountable Act (HFCAA) list. The HFCAA states that companies are at risk of being delisted if U.S. regulators do not receive company audits for three consecutive years.

The “clock” for the HFCAA began in 2021, so the earliest companies can be delisted from U.S. exchanges is 2024. Other Chinese companies on the list include Pinduoduo (NASDAQ:PDD), EHang (NASDAQ:EH) and JD.com (NASDAQ:JD).

What’s Next for Nio?

KraneShares CIO Brendan Ahern has a rather negative outlook on Chinese companies listed on U.S. exchanges. He said the following:

“All the Chinese listed ADRs will likely end up on the list, because none of them will be able to comply with requests to have their audits reviewed.”

However, per Barron’s, Nio CEO William Li remarked the following about the new Singapore listing:

“Today marks a new milestone for NIO. The listing on the SGX is of great importance to NIO’s global business development […] By collaborating with science and research institutions and establishing NIO’s R&D center for [artificial intelligence] and [autonomous driving] in Singapore, we will further broaden and enhance our global R&D footprint.”

Nio delivered 5,074 vehicles in April, marking a total of 30,842 vehicles so far in 2022. That number is up 13.5% year-over-year (YOY). However, Nio’s production has also been negatively impacted by supply-chain issues and lockdowns in China recently. Still, the company says these issues have been “recovering gradually.”

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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