Shares of Chinese autonomous driving startups WeRide and Pony.ai fell sharply on their first day of trading in Hong Kong on Thursday, despite raising nearly US$1.2 billion combined in their much-anticipated listings.
Pony.ai’s shares plunged nearly 11% in early trading after the company raised about US$863 million, while WeRide opened about 8% lower following its US$308 million offering. The declines came even as Hong Kong’s benchmark Hang Seng Index rose 0.5%, highlighting the subdued investor sentiment toward the high-profile debuts.
Both companies are key players in China’s fast-evolving autonomous driving industry, seen as strategic to the country’s broader push in artificial intelligence and next-generation mobility. Their Hong Kong listings mark a major step in bringing China’s self-driving technology firms to public markets amid tightening U.S. regulatory scrutiny of Chinese tech companies.
The weak start in Hong Kong extended losses from overnight trading in the United States. On Wednesday, WeRide’s U.S.-listed shares fell 5.2%, while Pony.ai’s stock slipped 2%, signaling cautious investor appetite ahead of the dual listings.
The disappointing performance also follows a lackluster debut from electric vehicle manufacturer Seres Group, which went public in Hong Kong on Wednesday in the city’s first US$1 billion-plus IPO this year not to post first-day gains. Seres shares ended their debut session flat after falling as much as 10% intraday and were down another 2% on Thursday.
The back-to-back declines underscore lingering concerns over valuation, profitability, and market sentiment toward China’s technology and electric vehicle sectors, both of which have faced rising competition and regulatory headwinds. Analysts noted that investors remain selective, favoring profitable or well-established firms over those with long paths to commercialization.
Still, Hong Kong’s IPO market has shown remarkable resilience this year. According to data from LSEG, the city has overtaken New York and Nasdaq as the world’s leading venue for new listings in 2025, excluding special purpose acquisition companies (SPACs). So far, Hong Kong has raised about US$31.2 billion from new listings—nearly triple the total from the same period last year.
The listings of WeRide and Pony.ai were widely seen as a test of investor confidence in China’s autonomous driving industry, which has attracted billions in venture capital and policy support. Both companies are among the few granted permits to operate fully driverless robotaxi services in major Chinese cities, such as Guangzhou and Beijing.
While their subdued debut suggests short-term caution, analysts say the long-term prospects for China’s autonomous driving sector remain strong, driven by advances in AI, data analytics, and government-backed smart transportation initiatives.
As of mid-day trading, both WeRide and Pony.ai shares remained under pressure, with investors weighing the companies’ potential for future growth against the high costs and regulatory uncertainties of scaling autonomous mobility in China and beyond.
