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NIO Stock Debuts in Hong Kong. Its US Shares Are Getting Killed.

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Pedestrians walk past a Nio Inc. showroom in Beijing, China

Qilai Shen/Bloomberg

Stock in Chinese electric-vehicle maker


NIO

is now listed on two stock exchanges: The New York Stock Exchange and the Hong Kong stock exchange. Shares made their debut in Hong Kong Thursday. They dropped.

NIO (ticker: NIO) shares dropped 0.7% in overseas trading, closing at 158.90 Hong Kong dollars after opening at HK$160. The U.S. to Hong Kong dollar exchange rate is 7.82. The HK$158.90 level corresponds to a U.S. share price of $20.32.

NIO shares closed in New York at $20.17 on Wednesday. It looks as if Hong Kong investors were following the U.S. market in Thursday’s overseas trading.

Prices for dual-listed stocks don’t have to match, but they should be close. And investors can track prices on dual-listed shares to get a sense of where a stock might be headed in either market from day to day.

NIO shares traded lower in the U.S. on Thursday, down 13% to $17.52. The

S&P 500
fell 0.5% and the

Dow Jones Industrial Average
was off about 0.4%.

But the Thursday U.S. drop follows a big rise Wednesday. NIO shares rose 12% in Wednesday trading in the U.S. on what was a big day for all U.S. stocks. The S&P 500 and Dow Jones Industrial Average rose 2.6% and 2%, respectively. The

Nasdaq Composite
rose 3.6%.

The big bounce was a welcome reprieve for investors. Coming into Thursday trading, NIO stock is still down about 36% so far in 2022 and down more than 60% from its July 2021 52-week high of more than $55 a share.

Rising interest rates, inflation and the Russia-Ukraine conflict have sapped some investor willingness to hold high-growth stocks. The

Russell 1000 Growth Index
has underperformed the

Russell Value Index
by more than 10 percentage points so far in 2022.

NIO qualifies as a growth stock. The company isn’t expected to be profitable in 2022, but sales are expected to rise by about 80%.

Write to Al Root at allen.root@dowjones.com

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