Nio, the Chinese electric car upstart, plans to list its shares in Singapore, making the city-state a third base where it trades as geopolitical tensions between China and the US intensify.
Nio said on Friday that it is seeking a secondary listing of its Class A common shares “by way of listing” on the Singapore Securities Trading Limited, a way of listing securities already listed on another exchange.
The announcement came after the US Securities and Exchange Commission added more than 80 companies to the list. list mainly Chinese companies facing delisting from US exchanges, including Nio and other tech giants such as microblogging platform Weibo, video streaming site Bilibili, e-commerce platforms JD.com and Pinduoduo, Tencent Music Entertainment (Tencent’s music empire) and game company . NetEase.
Li Auto and Xpeng, Nio’s competitors in China, are also on the list.
The delisting watchlist represents a longstanding standoff between Chinese and US accounting authorities. In 2020 the Trump administration passed the bill demanding greater transparency in the books of foreign companies registered in the US, focusing on the auditing practices of Chinese entities. But this policy does not suit countries that do not want to transfer the data of their home-grown enterprises, fearing risks to national security.
Several Chinese tech companies have acted proactively by undertaking secondary listings long before they made it onto the watchlist. The Hong Kong Stock Exchange saw a wave of “homecoming listsby such giants as AlibabaJD.com and NetEase, which would help them attract investors at home who are more familiar with their business, while insuring against the risk of being listed on US exchanges.
Credit: techcrunch.com /