(Bloomberg) — Shares of Nio Inc. began trading in Hong Kong on Thursday after the Chinese electric-car maker chose a listing path that doesn’t involve selling new shares or raising funds.
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The stock traded at HK$164.50 as of 9:40 a.m. in Hong Kong after opening at HK$160. That compares to a closing price of $20.17 (HK$157.71) for its American depository receipts on Wednesday. The New York-listed shared have lost about 36% so far this year.
The move completes a homecoming of sorts by all three U.S.-traded Chinese EV manufacturers, after Xpeng Inc. and Li Auto Inc. began trading on the Hong Kong exchange last year. However, unlike its rivals, Shanghai-based Nio decided to list in the Asian financial hub by way of introduction, an easier way to join this market for firms already traded elsewhere. It provides investors a hedge against the risk of being delisted from U.S. exchanges.
READ: Nio’s Homecoming Listing Shows Path for Chinese ADRs: ECM Watch
Morgan Stanley, Credit Suisse Group AG and China International Capital Corp. are the joint sponsors of Nio’s Hong Kong listing.
Nio initially filed for the listing in March 2021, but that was delayed amid regulatory concerns about aspects of its structure, Bloomberg News reported last year.
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