Uxin Limited (NASDAQ: UXIN), an online used automobile retailer, saw its stock rise sharply on Tuesday.
What happened was this: William Li, chairman and CEO of Nio, Inc. (NYSE: NIO), and Erhai Liu, managing partner at Joy Capital, have joined Uxin’s board of directors, the company announced late Monday. The appointments started on Monday.
This follows the announcement in mid-June that the first tranche of Uxin’s $315 million financing transaction had closed. To raise $100 million, the company issued 291.29 million senior convertible preferred shares (equal to 97.1 million ADSs) to Nio Capital and Joy Capital.
Uxin also announced the appointment of Cheng Lu and Zhuang Yang to the board of directors as independent directors.
Cheng Cheung Lun Julian, Qiang Chang Sun, Lin Cong, Muyuan Wang, Shun Lam Steven Tang, and Yong Zhong Huang have all resigned from the board of directors at the same time, according to the firm.
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The Reason for Its Importance: On Monday, Li resigned from Nio’s board’s nominating and corporate governance committee. Yu Long, a Chinese businesswoman, has been appointed as a new independent director and chairwoman of the electric vehicle manufacturer’s nominating and corporate grievance committee.
In January, Nio established its own used car trading business, with the dual goal of providing maximal benefit protection to users who sell automobiles and providing a new car-like experience to users who buy used cars.
Price Action in NIO and UXIN: Uxin shares were up 9.82 percent to $3.69 at the time of writing, while Nio was down 2.46 percent to $45.21.
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Nio provided the photo.
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