NIO opens up 11.6% in Hong Kong as ES7 launch looms - CnEVPost

NIO opens up 11.6% in Hong Kong as ES7 launch looms

NIO opened up 11.61 percent to HK$148, recovering losses from the past two days. The company's US-traded shares rose 16.7 percent to $18.66 overnight.

NIO opens up 11.6% in Hong Kong as ES7 launch looms-CnEVPost

Shares of NIO (NYSE: NIO, HKG: 9866, SGX: NIO) traded in Hong Kong opened up sharply today, just about 10 hours before the launch of its new SUV, the ES7.

NIO opened up 11.61 percent to HK$148, recovering losses from the past two days. The company's US-traded shares rose 16.7 percent to $18.66 overnight.

Its local peers XPeng Motors (NYSE: XPEV, HKG: 9868) and Li Auto (NASDAQ: LI, HKG: 2015) are also up in Hong Kong, though by a more modest 2.9 percent and 4.54 percent, respectively.

Hong Kong markets are up overall today, with the Hang Seng Index up 0.21 percent and the Hang Seng Tech Index up 1.26 percent at the open.

NIO will hold a product launch event at 20:00 Beijing time on June 15, and there will be a new addition to the NIO product family, it said Tuesday.

The company will live-stream the event on platforms including the NIO app, NIO.com, Weibo, Facebook and YouTube.

Although not explicitly mentioned by NIO, the product is apparently the ES7, the first NIO SUV built on the NT 2.0 platform.

In a research note sent to investors on Tuesday, Deutsche Bank analyst Edison Yu's team reiterated their belief that NIO is in the midst of the most important product cycle in the company's history.

NIO's deliveries have been under pressure for the past few quarters due to operational bottlenecks and Covid lockdowns, but they are on track to increase from about 7,000 units per month in May to 25,000 units by the end of this year, thus shifting the narrative from supply constraints to a strong product super cycle, the team said.

It is also worth noting that China Securities Index Co Ltd (CSI), a local index provider, will officially launch the CSI Global Intelligent Vehicle Index, CSI HK and US Listed Intelligent Vehicle Index, CSI 300 Bank and Insurance Index, and CSI 300 Bank and Insurance Index on July 6. CSI 300 Bank and Insurance Index, and CSI 800 Bank and Insurance Index.

Tesla, NIO, XPeng and Li Auto will be included in the two smart vehicle-related indices, which are expected to bring additional passive inflows to them.

NIO has been included in the Hang Seng Composite Index as well as the Hang Seng Tech Index, effective Monday, June 13, according to the Hang Seng Indexes Company Limited in its quarterly review released on May 20.

NIO's inclusion in the Hang Seng Tech Index is expected to bring in $44.3 million in passive inflows, according to a research note issued by CICC analyst Liu Gang's team on May 23.

Phate Zhang/CnEVPost: Phate is the founder and main author of CnEVPost. He has been reporting since 2009, mainly on macroeconomics and capital markets. Contact via: [email protected]
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