This Nio Connection Is Sending Chinese Used Car Retailer Uxin's Stock Higher

Shares of Uxin Limited UXIN, an online used car retailer, were trading solidly higher Tuesday.

What Happened: Nio, Inc.'s NIO chairman and CEO William Li has joined Uxin's board along with Erhai Liu, managing partner at Joy Capital, Uxin announced late Monday. The appointments were effective Monday.

This development follows the closing of the first tranche of Uxin's $315-million financing transaction, which was announced in mid-June. The company issued a total of 291.29 million senior convertible preferred shares — equivalent to 97.1 million ADSs — to Nio Capital and Joy Capital to raise $100 million.

Additionally, Uxin announced the appointment of Cheng Lu and Zhuang Yang as independent directors of the board.

Concurrently, Cheng Cheung Lun Julian, Qiang Chang Sun, Lin Cong, Muyuan Wang, Shun Lam Steven Tang and Yong Zhong Huang have resigned from their positions on the board, the company said.

Related Link: Will Nio's 'Power Plan 2025' Stimulate Chinese EV Nameplate's Sales?

Why It's Important: Li stepped down from the nominating and corporate governance committee of Nio's board Monday. The company named Chinese businesswoman Yu Long as a new independent director and also as the chairperson of the EV manufacturer's nominating and corporate grievance committee.

Incidentally, Nio launched its own used car trading service in January, with the twin objective of giving maximum benefit protection to users who sell cars and giving users who buy used cars a new car-like experience.

NIO, UXIN Price Action: At last check, Uxin shares were rallying 9.82% to $3.69, while Nio was down 2.46% at $45.21.

Related Link: Nio Extends Losing Streak Amid 'Power Day'; Critical Levels To Watch Near Term

Photo: courtesy of Nio.