(Yicai) Sept. 30 -- Nio’s shares soared after its Chinese subsidiary secured a CNY13.3 billion (USD1.9 billion) cash injection from the new energy vehicle startup and state-backed investors.

In Hong Kong, Nio [HKG: 9866] climbed 16.8 percent to end at HKG56.35 (USD7.25) a share, while its Singapore-listed stock [SGX: NIO] gained 17.4 percent to USD7.30. In pre-market trading in New York, Nio [NYSE: NIO] was up 13.5 percent at USD7.40 as of 6.28 a.m. local time.

Nio said yesterday that it will subscribe to CNY10 billion of newly issued shares of Nio Holding, the unit better known as Nio China, while existing investors Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment, and CS Capital will shell out CNY3.3 billion for new shares.

Shanghai-based Nio’s controlling interest in Nio China will fall to 88.3 percent from 92.1 percent following the cash injection.

“This investment not only demonstrates the strategic investors' firm support for the high-quality development of the electric vehicle industry but also underscores their strong recognition of Nio's unique values and industry leadership,” the carmaker said.

Jianheng New Energy Automobile Investment Fund and Anhui Provincial Emerging Industry Investment are backed by the government of Anhui province. CS Capital is controlled by central state-owned enterprises.

Founded in 2014, Nio is known for producing premium, smart EVs that compete with brands such as Tesla in China. It has expanded rapidly in the premium EV market and in addition to its main Nio marque, the automaker recently launched a second brand, Onvo, which targets a broader audience with more affordable models.

“With an enhanced balance sheet, Nio is strategically positioned to maintain its long-term advantages in technology, products, services, and user community, promote its multi-brand strategy and penetrate broader markets, and propel the company into the next stage of sustainable growth,” the firm said.

Competition has stiffened in China’s auto market, the world’s biggest, since the start of last year, when a price war began. As competition intensifies in the smart EV field, this investment could be crucial for Nio to solidify its position as a leading player, according to analysts.

“As China approaches its 75th anniversary, Nio China once again receives capital support from its shareholders," William Li, Nio's founder, chairman, and chief executive officer, said on social media after the announcement was released.

"Four years ago, Anhui and Hefei rescued Nio from the intensive care unit," Li noted. “Under everyone's care, Nio's sales have increased five-fold since then, continuously leading the high-end intelligent EV market.”

Editor: Futura Costaglione