HK Stock Market Move | NIO-SW(09866) rose more than 5% after being sued by a Singapore sovereign wealth fund. The company responded that the allegations had no factual basis.

NIO-SW (09866) rose more than 5%, after falling nearly 9% at the close yesterday. As of the time of writing, it is up 3.19% at HK$50.9, with a turnover of HK$184 million. In recent days, the news of the lawsuit filed by the Government of Singapore Investment Corporation (GIC) against NIO has caught the market's attention. GIC accuses NIO of inflating revenue and profits through the Wuhan Wueneng Battery Asset Co., Ltd., a joint venture with its partners, misleading investors and causing losses to GIC. NIO responded that this case is not a new event and is not related to the recent operating conditions of NIO, but stems from unfounded accusations made in a short-selling report by Grizzly Research LLC in June 2022. The report has no basis, contains many errors, unfounded speculations, and misleading conclusions. To protect the rights of all shareholders, in August 2022, the board of directors' independent committee conducted an independent internal investigation with the assistance of a third-party international law firm and forensic accounting firm, and found no factual basis for the accusations. A research report from Deutsche Bank stated that Grizzly's concerns about NIO's battery asset management business are unfounded, and elements of the business model have been severely misunderstood.