Nio China cash injection positive development, says Daiwa

Daiwa keeps a Buy rating on Nio after the company announced that NIO China will receive a cash injection of CNY 3.3B from its existing shareholders. Meanwhile, Nio will invest an additional CNY10B in cash in Nio China, the analyst tells investors in a research note. The firm says Nio China is the core operational entity for Nio and the cash injections by existing shareholders is a positive development, supporting supporting the business operations, given that the company is still loss making as of Q2.