the chinese electricvehicle maker is selling stock to raise money tapping the us market for the cash despite recent volatility for chinese stocks listed here nio ticker nio shares were off about 3 in premarket trading while futures on the sp 500 and dow jones industrial average both declined slightly nio shares are weak because the company is diluting the holdings of existing shareholders with its sale of about 2 billion in new american depositary receipts or adrs—essentially us stock in foreign corporations nio’s market capitalization is about 67 billion so the sale represents a dilution of about 3 the sale is a small reminder to investors that nio is a new company that still needs external funds to finance its growth nio is well capitalized however it ended the second quarter with more than 7 billion on its balance sheet which it is using to build more autoproduction capacity and invest in its lineup of vehicles the fact that nio is raising money might not be as big a surprise as where the company decided to get the cash two of nio’s uslisted chinese peers– xpeng xpev and li auto li–both recently decided to raise money by selling stock in hong kong nio is sticking with its sole stock listing in the us nio wasn’t immediately available to comment when asked if it considered a second stock listing on another exchange a second listing gives a company access to another pool of investors and capital what’s more nio’s capital raising comes as the chinese regulatory crackdown on some chinese stocks such as didi didi which chose to raise money in the us–has led to volatility for investors the golden dragon china index which tracks the stocks of chinese firms listed in the us is down more than 40 from its february 52week high the index has rebounded about 22 from its midaugust 52week low coming into wednesday nio stock was down about 17 so far in 2021 which isn’t entirely a surprise shares are up about 140 over the past 12 months and rose more than 1100 in 2020