Nio (NYSE:NIO)
Today marked the second day in a row that investors in Nio (NYSE:NIO) were treated to some positive news from Chinese authorities. Again reacting positively this morning, the company’s American depositary shares jumped 6% when the market opened but have since settled down to a gain of 1.9% as of 10:05 a.m. Eastern Time.
What’s the Reason?
The news that the Chinese government was introducing a new stimulus package to kickstart a sluggish economy caused yesterday’s share price of the Chinese electric vehicle manufacturer to skyrocket. This has the potential to increase customer demand for Nio’s vehicles. On the other hand, U.S. investors have been forced to consider the possibility that Nio (NYSE:NIO) shares could be delisted alongside those of other Chinese companies that fail to provide sufficient auditing standards to satisfy U.S. regulators. Reuters says that the relevant authorities in both countries agreed today about the subject above.
What’s Next?
According to the report, the authorities in Washington and Beijing have inked a first audit agreement to avert delistings of their respective cities. The fact that the Public Company Accounting Oversight Board (PCAOB) and Chinese regulators agreed is excellent news for Nio (NYSE:NIO) and the more than 160 other Chinese companies that were identified as being at risk of being delisted due to their failure to comply with the regulations.
The agreement ought to grant the Public Company Accounting Oversight Board (PCAOB) access to its required audit material. Nevertheless, investors will still be required to keep an eye on how the deal is carried out. If it operates as planned, it should eliminate the possibility of delisting for any of the recognized Chinese businesses with proper auditing oversight. This will be the case if it works as intended.
Nio (NYSE:NIO) also announced that it would begin shipping its first ET5 mid-size sedans on September 30. The company made this announcement separately. According to CnEVPost, Nio co-founder and president Qin Lihong announced this while attending a Chinese vehicle exhibition. Qin also stated that he anticipates the gasoline-powered BMW 3 Series to lose market share to the electric-powered ET5 next year in China.
Nio’s (NYSE:NIO) growth in the years to come will be contingent on the number of sales made of the sedan and the success of Nio’s other vehicles. But it was essential for investors in the United States to learn today that their concerns about the company being delisted could finally be in the past.
Featured Image : Megapixl © Michaelvi
Author Shariq Khan 
