Why Nio Stock Dropped 16% in July

The returns in the stock of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) crossed into the red for the year in July. But much of the decline had less to do with company-specific information and more to do with more general risks related to owning shares in Chinese companies. For the calendar month, U.S.-listed shares in Nio were down 16%, according to data provided by S&P Global Market Intelligence.

All equities come with risks, but there can be certain unique risks with owning international companies. The latest concerns with Chinese stocks began after ride-hailing company DiDi Global went public on the New York Stock Exchange on the last day of June. Chinese regulatory officials subsequently launched what was dubbed a cybersecurity review of DiDi and prohibited new downloads of the company's app.

Nio electric SUVs being loaded for delivery to Norway. Image source: Nio.

Source Fool.com