Singapore’s sovereign wealth fund GIC has filed a lawsuit against Chinese EV maker Nio in a US court, accusing the company and top executives of inflating revenue and misleading investors. The rare legal move by GIC sent Nio’s shares tumbling in Hong Kong and Singapore.

The complaint centers on Nio’s accounting for sales to an affiliate, Nio Battery Asset, or Weineng in Chinese, which allegedly bought batteries upfront so Nio could book full revenue immediately, even though customers were paying gradually through subscriptions. The filing argued that such income should have been recognized gradually, not all at once.

Nio shares dropped as much as 13% in Hong Kong and 9.8% in Singapore, as news of the legal action ignited doubts over the company’s outlook and its ability to raise more funds. Last month, Nio raised $1.2 billion through a share sale — one of several equity offerings that have brought in billions over the years — but it has yet to post a profit since founding in 2014.

The lawsuit marks an unusual offensive from GIC, which has rarely sued over soured investments. Caixin reported that it’s the first such action by a sovereign wealth fund against a Chinese company listed outside the country. The Singapore fund’s claims echo those made by other investors, and its case has been stayed by a judge as it’s similar to a previous suit filed in 2022 against Nio, according to an Oct. 3 filing. —Jui Chakravorty

What You Need to Know Today

TSMC hiked its projection for 2025 revenue growth for the second time this year, reinforcing hopes in the longevity of a global boom in AI spending. The company, the go-to chipmaker for Apple and Nvidia, now foresees mid-30% growth in annual sales, up about a few percentage points from previously. The outlook hike was striking given Taiwan’s biggest company last raised its guidance just three months ago, igniting a rally that’s tacked on more than $260 billion to its market value.

Global stocks advanced as strong technology earnings shifted focus away from the lingering threat of a US-China trade war. Gold surged past $4,200 an ounce, taking gains this year to more than 60% as trade frictions and expectations for further Federal Reserve interest-rate cuts lured buyers. TSMC’s results underscored how leading chipmakers stand to be among the biggest winners from an AI investment boom that’s expected to top $1 trillion in the coming years.

Global CEOs, including Apple’s Tim Cook, are set to meet China’s top trade negotiator He Lifeng in Beijing this week, according to people familiar with the matter. The gathering — part of a Tsinghua University annual meeting — comes amid rising US-China trade tensions, following Beijing’s new curbs on rare earth exports that have prompted Washington to call for a coordinated response. The sitdown could signal a rare chance for dialogue as both sides brace for a potential meeting between President Donald Trump and President Xi Jinping later this month.

He Lifeng Photographer: Chris J. Ratcliffe/Bloomberg

Bank of Japan’s hawkish voice, Naoki Tamura, is pushing again for a rate hike, warning that inflation risks are rising and the policy interest rate remains far from neutral. He said the central bank must move soon to avoid falling behind the curve — or risk harsher tightening later. Despite market doubts after recent political turmoil, Tamura signaled that one hike won’t cut it as Japan edges closer to sustained 2% inflation.

Jane Street’s iron grip on Taiwan’s $93 billion bond ETF market is under fire as Goldman Sachs and other Wall Street giants move in. Jane Street has at some points handled more than half of all US bond portfolio trades with Taiwanese asset managers that issue ETFs, according to people familiar with the matter. But its outsized power is now drawing rival raids in one of Asia’s hottest ETF markets that’s doubled in size in three years as insurers and retail investors chase yield under favorable rules.

Chinese state-backed hackers are blamed for a “potentially catastrophic” breach of US cyber firm F5, according to people familiar with the matter. Representatives for F5 have told customers that the hackers were in the company’s network for at least 12 months, according to the people. F5 disclosed on Wednesday morning in a regulatory filing that nation-state hackers had breached its networks and gained “long-term, persistent access” to certain systems. The US and UK issued emergency warnings, urging immediate patches.

Separately, Chinese hackers accessed classified UK computer systems for more than a decade, people familiar with the matter said, as the British government published documents acknowledging that it considered Beijing’s spying a threat to the economy and local democratic institutions.

India’s central bank head Sanjay Malhotra has sent a clear signal to currency traders: the rupee can move a little more freely, but speculators risk getting crushed. The currency rallied nearly 1% on Wednesday after the Reserve Bank of India waded into both offshore and onshore markets, forcing traders to scramble to cover their short bets. With the RBI wielding the rod again, market participants “will think twice” before betting against the rupee, according to Michael Wan, senior currency analyst at MUFG Bank. 

Sanjay Malhotra Photographer: Samuel Corum/Bloomberg

What You’ll Need to Know Tomorrow

For Your Commute

Stablecoins are supposed to be stable. If these virtual dollar tokens are emerging from the shadows of cryptocurrency trading into mainstream finance, it’s because they’re backed by real assets, exchangeable for real dollars and hold their dollar or euro peg while delivering what advocates say is seamless transfer of value, writes Bloomberg Opinion’s Lionel Laurent.

But not all stablecoins are created equal — and not all have been tested by a serious downturn — as shown in last Friday’s tariff-driven crypto selloff. As leveraged bets worth $19 billion were unwound and volatile altcoins sank to near-zero amid a dash for cash, the third-largest stablecoin – USDe – briefly lost its dollar peg and fell to as low as 65 cents against the dollar on crypto exchange Binance. Things have calmed down since then, but it’s clear that this is not the kind of move investors expect of so-called digital dollars. Read more here.

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