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Nio (NYSE:NIO) announced that it will be included in the Hang Seng TECH Index as a constituent stock, starting from June 13, 2022.
The index represents the 30 largest tech companies listed in Hong Kong. Moreover, Nio will also be included in the Hang Seng Composite Index as a constituent stock.
Morgan Stanley analyst Tim Hsiao said such a decision was “well expected” and will give more liquidity and “a bit more diversity.”
“Index inclusion should attract some directional shift of passive funds tracking index that could bolster near-term liquidity of H-shares (US$54mn for Nio’s H-share vs. US$176mn for the ADR over the past 3 months). Meanwhile, the stock’s previous SGX listing could also attract some high net worth investors. As mentioned in our previous reports, being triple-listed, NIO is now better positioned to hedge ADR de-listing risks. All eyes are still on potential A-share listing which will take longer to eventuate,” Hsiao said in a client note.
Nio stock price is up 0.7% in pre-market Monday.
