Nio, a Chinese company that makes electric vehicles (NASDAQ:), announced today that it plans to list its shares in Singapore in a second listing two months after the Hong Kong listing.

This way, Singapore will become the third exchange that offers Nio’s shares, after New York and Hong Kong. The move didn’t surprise investors given that US-listed Chinese companies are facing potential delisting from US exchanges.

JPMorgan analyst Nick Lai expects a “limited fundamental impact on Nio’s operations in the near term” from the company’s decision.

“This, in our view, in a similar move to that in March when Nio had a secondary offering on the HKSE and the shares trading on the HKSE are fully fungible with ADRs in the US. We believe that the move to list in Singapore offers an alternative route for capital raising in future. Strategically, as Nio gradually expands its footprint to international markets (thus far, Europe), the company believes Singapore will also be an important regional hub considering its robust international financial system,” Lai told clients in a note.

He reiterated that he prefers OEMs with vertically integrated models of business, such as Guangzhou Auto and BYD (OTC):

By Senad Karaahmetovic