By Jiahui Huang
Chinese robotaxi rivals Pony AI and WeRide both slid in their Hong Kong debut, signaling some trepidation among investors but continuing a streak of listings that has made the city one of the world's busiest fundraising markets.
Both companies' shares opened lower on Thursday in their first day of trading in Hong Kong, underperforming the benchmark Hang Seng Index's 1.3% gain. Shares of Pony AI and WeRide, which both trade on New York's Nasdaq index, dropped 14% and 12%, respectively.
Pony AI was last trading at HK$119.50 while WeRide was at HK$23.78. The companies' U.S.-listed shares have had diverging performances so far this year, with WeRide down over 37% and Pony AI up 8%.
The lackluster debuts could be a reflection of investors booking profit quickly amid doubts about the viability of the robotaxi business, despite the industry's growth during the year. None of China's robotaxi firms have yet to turn a profit and the scale of the country's robotaxi fleet scale is still small.
Whether robotaxi companies can reach large-scale commercialization will depend on factors including various government regulations and consumer acceptance.
Still, the Hong Kong listings could be a tailwind for Pony AI and WeRide, giving them easier access to Asian investment capital and boosting their brand image in the region.
Pony AI raised net proceeds of HK$6.71 billion and will use around 50% of that to roll out robotaxi services in more markets. It will also use the funds for commercialization efforts. Around 40% of the sum raised will be used for research and development, it said.
WeRide raised net proceeds of HK$2.39 billion, 40% of which will be used to develop its autonomous-driving technology. Another 40% will be put toward accelerating commercialization and operations.
The offering comes as a flurry of offerings turbocharges Hong Kong's IPO market, which is on track to be the world's top destination for listings after a prolonged period of subdued activity.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
November 05, 2025 21:44 ET (02:44 GMT)
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