Chinese autonomous driving company Pony.ai saw its shares tumble 12% in their Hong Kong debut Thursday, while rival WeRide fell nearly 13%, despite raising HK$6.71 billion ($860 million) and HK$2.39 billion respectively. The dual listings mark a key step for both Guangzhou-based firms as they seek to diversify funding away from U.S. markets amid regulatory tensions.
Both startups plan to use the proceeds to develop Level 4 autonomous driving systems and expand internationally, including into the Middle East and Europe. Pony.ai CEO James Peng said the funds would also support infrastructure for automated parking and charging, while WeRide CEO Tony Xu Han highlighted investments in AI and data center capacity.
Analysts say the Hong Kong listings underscore the city’s emergence as a regional tech hub. “Clustering the listings helps position Hong Kong as a destination for Asia-focused technology companies,” said Rolf Bulk, equity research analyst at New Street Research.
However, challenges remain. U.S. restrictions on Chinese tech in connected vehicles could hinder their planned partnerships with Uber, while both firms still await full operational approvals in several markets.
Tu Le of Sino Auto Insights said the listings are as much about risk management as expansion: “They need capital and credibility outside the U.S. to compete globally.”
