NIO-SW (09866.HK)
🔋 Nio’s HK$4 Billion Fundraising Fuels Growth Plans — But Can It Deliver?
Chinese electric vehicle giant Nio is hitting the market with a bold share offering — up to 136.8 million new Class A shares on the HKEX at HK$29.46 (US$5.08) each. The goal? Fuel its smart vehicle innovation, expand its model lineup, and fortify its balance sheet.
While the move may raise fresh capital, it’s not catching analysts off guard. Morningstar’s Vincent Sun had already forecast a 167 million-share issuance for 2025. Still, he warns the stock could face short-term selling pressure, with investor confidence in Nio’s execution capabilities still shaky.
Nio’s management remains bullish, targeting doubling vehicle sales in FY2025 and promising higher vehicle margins by the second quarter. But Sun strikes a more cautious tone — projecting just 35% sales growth, factoring in internal brand competition from Onvo and Firefly, and potential execution gaps.
Sun keeps a US$5.60 fair value estimate per ADS, reflecting 1.1x FY2025 price-to-sales, and assigns the stock a four-star rating, indicating strong upside potential. Nonetheless, with a CNY4.5 billion (US$830.7 million) loss still forecast for FY2026, the road to profitability may stretch into 2027.
Nio shares dropped 7.07% to HK$30.25 on March 28.
Lion-China Merchants CSI Dividend Index ETF (SGX: ZHENG)
📈 New Dividend-Packed ETF Brings China’s Top Payers to Singapore Investors
A new player has entered the SGX’s ETF arena. The Lion-China Merchants CSI Dividend Index ETF is now live on the Singapore Exchange (SGX) — the 48th ETF on the bourse and the ninth launched under the SSE-SGX ETF Link, strengthening financial ties between Singapore and China.
Managed by Lion Global Investors (LGI), the ETF tracks 100 of China’s highest-yielding, financially sound companies listed on the Shanghai and Shenzhen stock exchanges — handpicked for consistent dividends and strong free cash flow over three years.
🔝 Top holdings include:
Cosco Shipping Holdings, Jizhong Energy Resources, Heilan Home, Ninggo Huaxiang Electronic, Chongqing Department Store, Shanxi Coal International Energy Group, Shanxi Coking Coal Energy Group, Nanjing Iron & Steel, Anhui Hengyuan Coal Industry & Electricity Power, and Guangdong Provincial Expressway Development.
Sun Mingxia, Deputy GM of China Merchants Fund Management, praised the listing as “a landmark accomplishment,” offering both domestic and global investors exposure to the dividend-rich growth of China’s A-share markets.
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