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CHINA BRIEF | Nio China secures USD 680 million cash injection

Investors will inject in total USD 990 million into Nio China in five installments.

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Chinese electric vehicle (EV) maker Nio (NYSE: NIO) has announced on Monday that investors have completed the first two installments of their cash injection in Nio China, depositing RMB 4.8 billion (USD 680 million) out of the RMB 5 billion into the newly established division.

According to Nio’s official disclosure, the remaining RMB 200 million for the first two installments is set to be paid before September 30, 2020.

As previously announced, investors including Anhui Provincial Sanzhong Yichuang Industry Development Fund, Jianheng New Energy Fund, and Advanced Manufacturing Industry Investment Fund will inject in total RMB 7 billion (USD 990 million) into Nio China in five installments. Nio has also deposited RMB 2.55 billion in two installments out of the accorded RMB 4.26 billion.

Earlier this month, social and entertainment giant Tencent (HKG: 0700) invested USD 10 million to acquire 1.68 million American depositary shares (ADS) of Nio, raising its shareholding to 15.1%, KrASIA wrote.

Nio’s stock price rose 4.78% to USD 7.23 per share at closing yesterday, up 70% from USD 4.26 on June 1.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.