- The stock price of Nio Inc (NYSE: NIO) fell 8.45% yesterday. This is why it happened.
The stock price of Nio Inc (NYSE: NIO) fell 8.45% yesterday and it is down over 5% pre-market today. Investors appear to be responding negatively to the Chinese government planning to regulate companies being traded in the U.S.
The Chinese government especially appeared to be targeting Didi Global — which went public in the U.S. markets last week and raised over $4 billion in the process. But the stock price of Didi Global fell substantially after the Chinese government ordered the app to be removed from mobile app stores as part of a broader crackdown associated with China-based companies that have overseas listings.
Along with Didi, the Chinese government also fined Tencent Holdings and Alibaba Group for failing to gain approval for earlier M&A deals.
The Chinese government also deployed cybersecurity reviews on Didi and several Chinese companies listed on the U.S. markets this year like Full Truck Alliance and Kanshun Limited. There are concerns that the audits required of companies listed in the U.S. could compromise the personal information of Chinese consumers.
Nio was not named in the cybersecurity reviews. But it seems like Nio is falling due to a sympathy play associated with Didi.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.