China’s EV darling Nio turns to Hong Kong and Singapore amid risk of US delisting – TechCrunch

Nio, an electric car start-up from China, plans to list its shares in Singapore, making the city-state the third base for trading as geopolitical tensions between China and the US mount.

Nio said Friday it is seeking a secondary listing of its Class A common shares “by way of introduction” on the Singapore Exchange Securities Trading Limited, a way to list securities already issued on another exchange.

The company’s stock remains primarily listed and traded on the New York Stock Exchange, where it debuted in 2018. Earlier this year, Nio completed a secondary listing in Hong Kong.

The announcement came after the US Securities Exchange Commission added more than 80 companies to a list of mostly Chinese companies banned from US exchanges, including Nio and other tech giants such as microblogging platform Weibo, video streaming site Bilibili, e-commerce platforms and Pinduoduo, Tencent Music Entertainment (Tencent’s music streaming empire), and gaming company NetEase.

Li Auto and Xpeng, Nio’s rivals in China, are also on the list.

The delisting watchlist represents a protracted standoff between accounting authorities in China and the US. In 2020, the Trump administration passed a bill demanding greater insight into the books of US-listed foreign companies, zooming in on the auditing practices of Chinese entities. But the policy has not worked well with countries that are reluctant to transfer their own company’s data for fear of national security risks.

A handful of Chinese tech companies have acted preemptively by pursuing secondary listings well before they were put on the watchlist. The Hong Kong Stock Exchange saw a spate of “homecoming listings” from giants like Alibaba, and NetEase, which would help them attract home investors more familiar with their business, while hedging the risk of from US stock exchanges.

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