Why Nio Stock Got Crushed Today
Electric vehicle (EV) stock Nio (NYSE: NIO) was in free fall today, slumping as much as 10% as of 12:20 p.m. ET, on Wednesday. Nio is one of the many growth stocks crashing ahead of the Federal Reserve's policy, though investors in the EV manufacturer have been gripped by more than just inflationary fears.
Investors are getting more skeptical about putting their money into shares of China-based companies after the U.S. Securities and Exchange Commission (SEC) recently decided to tighten its grip on foreign companies listed in the U.S. The SEC will accomplish this by implementing a law requiring companies to submit their accounts reports and other documentation for audit. If they fail to comply, they face the risk of being banned from trading on U.S. stock markets.
The threat is particularly big for Chinese stocks given China's persistent disregard for compliance with the disclosure rules in the U.S.
Source Fool.com
