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Investing.com — On Monday, Chinese electric car company Nio Inc (NYSE:) announced the proposed secondary listing of its shares in Hong Kong.
NIO shares have bounced on the news, rising 8% above Friday’s closing price.
The company will list its shares on the Main Board of The Stock Exchange of Hong Kong Limited, with its American depositary shares (ADSs), continuing their primary listing on the New York Stock Exchange.
NIO shares are expected to commence trading on the Main Board of the SEHK on March 10. The shares will be listed “by way of introduction,” meaning a portion of NIO’s existing shares will be available for trading in Hong Kong. The decision means the company won’t sell new shares or raise any money.
The move comes at a time of heightened regulatory risk for Chinese companies in both the US and China, providing a way to offset some of the risk of being delisted from U.S. exchanges.
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