$NIO Inc (NIO.US)$Because regulatory and geopolitical issues have been the main factors that have kept investors away from Chinese equities — rather than fundamental problems with the companies themselves — this may be a good opportunity to buy excellent Chinese companies at much lower valuation multiples than seen last year. There are good reasons to remain optimistic about Nio. The fact that there are more bulls than bears on Wall Street reinforces this idea. Being eligible for a dual listing, Nio recently debuted on the Hong Kong stock exchange in hopes of reducing regulatory risk and minimizing investor concerns. The geopolitical chaos and skyrocketing oil prices have added a sense of urgency to the global push for alternative energy sources. This could give a boost to EV manufacturers, including Nio.
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