Chinese EV maker GAC Nio is undergoing due diligence for its Pro-A round of financing and is in close contact with a number of local governments, including those of Beijing, Zhejiang, and Henan provinces, according to China Times.

The report cited industry sources as predicting that, if negotiations go smoothly, GAC Nio's new manufacturing base and corporate headquarters would be expected to be sited according to future business development needs.

A number of large financial institutions, including Beijing Financial Holding Group, are also expected to have more substantial capital ties with GAC Nio, with the investors already arranging due diligence teams, the report said.

On Sept. 16, GAC Nio announced that it would launch the first phase of a $1 billion travel eco-fund with Xin Ding Capital.

Zhang Chi, chairman of Xin Ding Capital, which had invested in Xpeng and WM Motor, stated on the spot: "The establishment of the first phase of the $1 billion smart travel ecological fund is only the first step, and will provide more resources in the smart travel sector in the future."

Just a month later, GAC's financing queue is bringing in more potential investors in addition to the aforementioned participants and the addition of Xin Ding Capital, which is active in investing in the car-making industry.

Investment sources said that Beijing Financial Holding Group Co. has also started substantive contacts with GAC Nio, and the cooperation between the two sides at the capital level is expected to be further strengthened.

"This is the first round of financing for GAC Nio, and the related funding amount has been finalized, unlike the previous first smart travel eco-fund, this time the related funding is a brand new entry," Informed sources revealed.

It is worth noting that this year, after the new energy vehicle investment wind to turn hot again, in addition to the current large financial capital in the intention to find suitable investment opportunities to enter the field, including multiple government investment funds have also begun to be active in the front of the stage.

In April this year, Nio signed a definitive agreement with strategic investors including Hefei Construction Investment Holdings (Group) Co. Ltd. to invest in Nio China and reached an agreement with Hefei Economic and Technological Development Zone to locate Nio China's headquarters.

At that time, Hefei city official microblogging information released said Hefei Nio China headquarters project is expected to raise more than 10 billion yuan, but for the headquarters, research and development and production base construction, but also will be invested in the company's research and development and improve the market operating system.

The local governments of Beijing, Zhejiang Province, and Henan Province have shown interest in GAC Nio, reflecting the investment value of new energy vehicles and the new car manufacturing and energy companies based on the new sales model after the domestic auto market warmed up.

GAC Nio was founded in April 2018, with equity mainly held by Hubei Changjiang Nio New Energy Industry Development Fund Partnership (Limited Partnership) (22.5%), Shanghai Nio Automotive Co. (22.5%), GAC New Energy Vehicle Co. (22.5%), Guangzhou Kaichuang Gongjin Investment Partnership (Limited Partnership) (10% shareholding).