Nio, an electrical automobile upstart from China, is planning to checklist its shares in Singapore, which is able to make the city-state the third base the place it trades as geopolitical tensions between China and the US heighten.
Nio stated on Friday that it’s in search of a secondary itemizing of its Class A unusual shares “by means of introduction” on the Singapore Alternate Securities Buying and selling Restricted, a strategy to checklist securities already in difficulty on one other alternate.
The corporate’s shares will proceed to be primarily listed and traded on the New York Inventory Alternate, the place it debuted again in 2018. Earlier this yr, Nio accomplished a secondary itemizing in Hong Kong.
The announcement got here after the US Securities Alternate Fee added over 80 firms to a checklist of principally Chinese language firms dealing with expulsion from US exchanges, which incorporates Nio and different tech behemoths like microblogging platform Weibo, video streaming website Bilibili, e-commerce platforms JD.com and Pinduoduo, Tencent Music Leisure (Tencent’s music streaming empire), and gaming firm NetEase.
Li Auto and Xpeng, that are Nio’s rivals in China, are additionally on the checklist.
The delisting watchlist represents a longtime standoff between accounting authorities in China and the US. In 2020, the Trump administration handed a invoice demanding extra visibility into the books of US-listed overseas corporations, zeroing in on the auditing practices of Chinese language entities. However the coverage has not sat nicely with international locations reluctant to show over the info of their homegrown companies, fearing nationwide safety dangers.
A handful of Chinese language tech firms have acted preemptively by pursuing secondary listings nicely earlier than they have been placed on the watchlist. The Hong Kong Inventory Alternate noticed a wave of “homecoming listings” by giants like Alibaba, JD.com and NetEase, which might assist them appeal to traders at dwelling who’re extra conversant in their companies whereas hedging towards the chance of being kicked off US bourses.