Chinese electric vehicle maker Nio (NYSE: NIO) shares dropped as much as 2.4% in Monday morning trading after CNBC published a report overnight that stoked underlying delisting fears among U.S. investors. As of 1:05 p.m. ET, the stock had recovered much of that drop, however, with shares trading at nearly breakeven.
The report said that China's securities regulator informed the financial news service that prior reports that Chinese regulators were making plans to set up a system to avoid some companies from being delisted on U.S. exchanges were not true. The Financial Times had earlier reported over the weekend that a three-tiered system was being investigated as a possible concession to American regulators to avoid some companies from potential delisting. A tiered system based on a company's level of data sensitivity could potentially allow U.S. officials to apply its required audit rules to those that China deems less sensitive.
Source Fool.com