Nio Inc. is seeing significant paper returns from its investment in ChangXin Memory Technologies (CXMT). The Chinese memory chipmaker recently debuted on the Shanghai Stock Exchange's STAR Market.
CXMT shares surged 466% during their first trading day. The stock closed at 49.00 yuan after an initial public offering price of 8.66 yuan.
Nio previously invested 158 million yuan for a 0.27% stake in the company. This investment remains subject to an 18-month lock-up period.
Nio’s U.S.-listed shares rose 2% in overnight trading following the news. This gain ended a seven-day losing streak for the electric vehicle manufacturer.
CXMT currently supplies memory chips for several Nio vehicle models. CEO William Li has identified the chip sector as a source of significant cost pressure.
Assenagon Asset Management disclosed a new $19 million stake in Nio. The European fund acquired these shares during the second quarter.