Why Nio Stock Is Plunging Today
After a stunning double-digit rally in its shares yesterday, Nio (NYSE: NIO) is swiftly giving up all of those gains and more today. As of 11:11 a.m. ET on Thursday, the electric vehicle (EV) stock was deep in the red and trading down 15.7%.
March 10 will go down in Nio's history as an important day: The company's shares started to trade on the Hong Kong stock exchange. Nio decided to list in Hong Kong after regulatory pressure on foreign stocks in the U.S. intensified, with the Securities and Exchange Commission's recent rule allowing the delisting of foreign stocks in the U.S. if the companies fail to meet audit requirements.
Although there's been no instance of any such failure on Nio's part, the threat for Chinese stocks in particular is real. China has persistently disregarded disclosure rules in the U.S. and has not allowed auditing by the U.S. so far.
Source Fool.com
