Why Nio Shares Rebounded Today
Many Chinese stocks that trade on U.S. exchanges have been hit hard due to uncertainties stemming from a clash between U.S. and Chinese politicians and regulators. After the Securities and Exchange Commission (SEC) added Nio (NYSE: NIO) to the growing list of companies that face delisting from U.S. exchanges if they don't change their auditing practices, the electric vehicle maker's shares plunged Thursday.
That downward move continued in early trading Friday morning, with the stock dropping by as much as 6.1%. But a sharp reversal followed. As of 11:53 a.m. ET, Nio's American depositary shares (ADSs) were almost back to even on the day, down just 0.15%.
The rebound came as investors realized an announcement the company made Thursday on the delisting topic could help ease concerns. Nio is proposing a secondary listing on the Singapore stock exchange that the company said would be "fully fungible with the ADSs listed on the NYSE [New York Stock Exchange]."
Source Fool.com
