Why Nio Stock Popped Friday
Many different U.S.-listed Chinese technology stocks have been hit in recent days by fear and uncertainty related to a crackdown by the Chinese government. The battle took another turn today, but there's reason to think Chinese electric vehicle (EV) maker Nio (NYSE: NIO) might benefit. As of 3:20 p.m., Nio shares were up 4% on the day, after having jumped more than 6% earlier.
The situation escalated somewhat Friday morning when the Securities and Exchange Commission highlighted additional risks with Chinese stocks, and imposed tougher disclosure requirements for these companies seeking to list on stock exchanges. So if the situation is getting even more tense, why would that be good for Nio? There are several possibilities, including the potential for the Chinese government to focus its attention on competitor Tesla's (NASDAQ: TSLA) operation in Shanghai.
Source Fool.com
