SINGAPORE: Singapore’s sovereign wealth fund GIC has sued Chinese electric vehicle (EV) maker Nio and two of its top executives over allegedly inflated revenues.
Nio stock plunged more than 13 per cent on Thursday (Oct 16), on course for its biggest one-day drop in about six months, as investors fretted over the company’s outlook amid the lawsuit.
The stock fell as far as HK$47 (US$6.05), its lowest since Sep 11, and was the biggest percentage loser on Hong Kong’s Hang Seng Tech Index and Hang Seng Automobile Index, which fell 1.5 per cent and 1.7 per cent respectively.
The drop followed a Wednesday report on the lawsuit from Chinese financial news magazine Caixin.
In the latest lawsuit, filed in August in the US district court for the southern district of New York, GIC said Nio and two executives misled investors with false statements and withheld information about its business and prospects.
NIO and GIC declined to comment on Thursday.
GIC is one of the world’s largest sovereign wealth funds, managing foreign reserves and investing globally across sectors such as technology and infrastructure.
