---
title: "Understanding the Market | NIO-SW closed down nearly 9% as reports state that NIO is being sued in the U.S. by Singapore's sovereign wealth fund GIC"
description: "NIO-SW plummeted in the afternoon, at one point dropping nearly 13% during the session. By the close, it fell 8.99%, reporting HKD 49.28, with a trading volume of HKD 1.944 billion. On the news front,"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261392170.md"
published_at: "2025-10-16T08:25:03.000Z"
---

# Understanding the Market | NIO-SW closed down nearly 9% as reports state that NIO is being sued in the U.S. by Singapore's sovereign wealth fund GIC

> NIO-SW plummeted in the afternoon, at one point dropping nearly 13% during the session. By the close, it fell 8.99%, reporting HKD 49.28, with a trading volume of HKD 1.944 billion. On the news front, according to Securities China citing multiple media reports, the Government of Singapore Investment Corporation (GIC) has filed a lawsuit against NIO and two of its executives in the United States, accusing them of securities fraud. GIC claims that NIO and its battery asset company, formed with partners, NIO Power, exaggerated revenue and profits by prematurely recognizing battery sales and concealing NIO's control over NIO Power. The fund alleges that NIO's battery swapping and leasing business model led to significant upfront revenue in the fourth quarter of 2020, doubling year-on-year, while U.S. accounting standards at the time may have required a different approach. NIO insists that it has transferred control of the batteries to NIO Power and fulfilled its reporting obligations. GIC also claims that despite NIO holding less than 20% equity in NIO Power, it has significant actual economic interests and operational control over NIO. The lawsuit is currently awaiting the outcome of the related U.S. class action case

According to Zhitong Finance APP, NIO-SW (09866) plummeted in the afternoon, with a drop of nearly 13% at one point during the session. By the close, it fell 8.99% to HKD 49.28, with a trading volume of HKD 1.944 billion.

On the news front, according to reports from multiple media outlets cited by Securities Times, the Government of Singapore Investment Corporation (GIC) has filed a lawsuit against NIO and two of its executives in the United States, accusing them of securities fraud. GIC claims that NIO and its battery asset company, formed with partners, NIO Power, exaggerated revenue and profits by prematurely recognizing battery sales and concealing NIO's control over NIO Power.

The fund alleges that NIO's battery swapping and leasing business model led to a significant recognition of upfront revenue in the fourth quarter of 2020, doubling year-on-year, while U.S. accounting standards at the time may have required a different approach. NIO insists that it has transferred control of the batteries to NIO Power and fulfilled its reporting obligations. GIC also claims that despite NIO holding less than 20% equity in NIO Power, it has significant actual economic interests and operational control over NIO. The lawsuit is currently awaiting the outcome of related U.S. class action cases

### Related Stocks

- [NIO.US - NIO](https://longbridge.com/en/quote/NIO.US.md)
- [NIO.SG - NIO Inc. USD OV](https://longbridge.com/en/quote/NIO.SG.md)
- [09866.HK - NIO-SW](https://longbridge.com/en/quote/09866.HK.md)

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|-------|-------------|-----|
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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.