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Chinese EV maker Nio listed on HK Exchange through secondary listing, won't raise money
CGTN
Nio's booth at the 2021 Shanghai International Auto Show. April 27, 2021. /CFP

Nio's booth at the 2021 Shanghai International Auto Show. April 27, 2021. /CFP

Chinese electric vehicle maker Nio started trading in the Hong Kong Stock Exchange (HKEX) through a secondary listing on Thursday.

The EV maker's share opened at HK$160 (129.3 yuan), but dropped to HK$143 by 14:15 p.m. Beijing Time Friday, a drop of 10.6 percent. That compares to a closing price of $17.77 for its listing at the New York Stock Exchange. 

Nio's move comes after two competitors Xpeng and Li Auto finished secondary listings in Hong Kong last year, after primary listings in New York. 

Different from its competitors, Nio chose to list in the Asian financial hub by way of introduction, which means the company will not sell new shares or raise any money in HKEX. It's an easier way to join the Hong Kong market for companies that are already trading elsewhere.

The method has been used by companies already trading elsewhere to build brand presence in Hong Kong and the Chinese mainland with a large base of existing shareholders, and allows the company to connect with investors in the region, according to a Bloomberg report. 

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