© Reuters. NIO (NIO) to be Added to The Hang Seng TECH Index, Inclusion Will Add Liquidity and Diversity Says Morgan Stanley
By Senad Karaahmetovic
Nio (NYSE:) announced that it will be included in the 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 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.
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