Daily Express Subscriber
Sign in to your account.

SINGAPORE: Shares of Chinese electric-vehicle company Nio Inc rebounded today from sharp falls a day earlier after Singapore’s sovereign wealth fund GIC sued it for allegedly inflating its revenues.

The lawsuit, filed in the Southern District of New York, alleged that Nio had issued misleading statements that artificially inflated the value of its securities, causing GIC to incur “significant losses”.

Nio shares were up 2.86 per cent in Singapore and 2.48 per cent in Hong Kong after midday yesterday.

Its stock had dropped as much as 9.8 per cent in Singapore and 13 per cent in Hong Kong on Thursday after the media reported on the lawsuit, which had been filed in August and could cast a shadow on the firm’s fund-raising plans.

The company has denied the allegations, saying that the lawsuit stemmed from false claims in a 2022 short-selling report by Grizzly Research.

It did not respond immediately to an AFP request for comment.

The EV maker raised US$1.2 billion (RM5 billion) through a share sale last month. It is lagging behind its Chinese rivals, led by BYD and Geely.

Nio designs, develops, manufactures and sells electric vehicles. It went public in the United States in 2018 and is also listed in Hong Kong and Singapore.

“While the allegation makes a dent in Nio’s corporate governance, we do not expect it to have a material impact on its operation with the ramp-up of new ES8 and Onvo L90 car production,” Morningstar Research Pte Limited said in a note.

“We think vehicle sales and an improvement in profitability would likely support near-term share prices.”