Chinese EV Maker Nio Debuts in Hong Kong Homecoming Listing


(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 closed at HK$158.90 in Hong Kong on Thursday, after trading as high as HK$169.50. That compares to a closing price of $20.17 (HK$157.72) for its American depository receipts on Wednesday. The New York-listed shared have lost about 36% so far this year.

So-called homecoming listings were touted to be a hot spot within Hong Kong’s market this year as initial public offerings by first time issuers become more scarce due to Beijing’s crackdown on several sectors.

Nio’s move comes after the two other U.S.-traded Chinese EV manufacturers — Xpeng Inc. and Li Auto Inc. — began trading on the Hong Kong exchange last year. The two together raised about $3.8 billion via these offerings, which are seen providing a hedge against the risk of being delisted from U.S. exchanges.

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. The method has been used by companies to build a brand in Hong Kong and Greater China with a large base of existing shareholders. Japanese fast fashion Uniqlo’s owner used it in 2014.

Didi Global Inc., which slumped after debuting in New York amid a wide clampdown by Chinese authorities, is planning a listing by way of introduction that would allow U.S. investors to swap their shares for the new stock in Hong Kong, Bloomberg News reported last year.

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.

READ: Nio’s Homecoming Listing Shows Path for Chinese ADRs: ECM Watch

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