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U.S.-listed Chinese EV maker Nio proposes a secondary listing of its shares in Singapore

KEY POINTS
  • Chinese electric carmaker Nio said on Friday it is planning a secondary listing of its shares in Singapore.
  • Nio is listed on the New York Stock Exchange and also carried out a secondary listing in Hong Kong in March. Singapore would be the third exchange that Nio’s shares are trading on.
  • The move comes as Nio and dozens of other U.S.-listed Chinese companies face a possible delisting from American exchanges.

Chinese electric carmaker Nio said Friday that it’s planning a secondary share listing in Singapore.

Nio, which is listed on the New York Stock Exchange, also carried out a secondary listing in Hong Kong in March. Singapore would be the third exchange that Nio’s shares are trading on.

The move comes as Nio and dozens of other U.S.-listed Chinese companies were added to a U.S. Securities and Exchange Commission list of firms facing a possible desilting from American exchanges.

Former President Donald Trump passed a law in 2020 that required U.S.-listed foreign companies to comply with higher auditing standards. Those that failed to follow the rules could be delisted.

To mitigate the delisting risk, major Chinese companies listed in the U.S. — such as AlibabaJD.com and others — have carried out secondary listings, mainly in Hong Kong.

But Nio’s move to list on a third venue, particularly Singapore, is a unique move — one that’s not been followed by many other Chinese firms yet.

Nio’s rivals Xpeng and Li Auto have both listed shares in Hong Kong via a so-called dual primary listing.

This article was originally published on cnbc.com

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