Hong Kong - Shares of Chinese autonomous driving firms WeRide and Pony.ai slid in their Hong Kong trading debuts on Wednesday, reflecting broader market concerns and a cautious investor reception too the sector. WeRide fell as much as 10.8% and closed at HK$36.50,below its HK$39.80 IPO price, while Pony.ai dropped 3.7% to HK$18.00.
The disappointing start for both companies comes as investor appetite for Chinese tech firms remains subdued amid regulatory uncertainty and economic headwinds. both WeRide and Pony.ai represent China’s ambitions to become a leader in the rapidly evolving autonomous vehicle technology space, a sector attracting critically important global investment. Their Hong Kong listings were closely watched as a gauge of market confidence in the future of self-driving technology and the potential for further capital raising to fuel expansion and research & growth.
WeRide, backed by Abu dhabi’s Mubadala Investment Co., raised approximately $363 million in its IPO. Pony.ai, supported by Toyota Motor Corp., secured roughly $89 million. Both firms intend to use the proceeds to fund technology development, expand their operational footprint, and pursue commercial deployments of their autonomous driving solutions.
WeRide currently operates robotaxi services in several Chinese cities, including Guangzhou, Shenzhen, and Beijing, and is also developing autonomous driving solutions for logistics and other applications. Pony.ai is focused on robotaxi and trucking services, operating in cities like Beijing, Shanghai, and Guangzhou.
“The market is still digesting the risks associated with the autonomous driving sector, including technological challenges, regulatory hurdles, and the high capital expenditure required for scaling up operations,” said David Li, an analyst at Capital Investment group. “Investors are adopting a wait-and-see approach, wanting to see more concrete evidence of commercial viability before committing significant capital.”
The IPOs follow a period of intense competition in the Chinese autonomous driving market, with numerous companies vying for dominance. The Chinese government has been actively promoting the development of autonomous driving technology, viewing it as a strategic industry with the potential to drive economic growth and enhance national competitiveness.
Despite the initial market setback,both WeRide and Pony.ai remain optimistic about their long-term prospects. They emphasize their technological advancements, strategic partnerships, and growing market opportunities as key drivers of future success. The companies are expected to continue investing heavily in research and development, expanding their service areas, and seeking regulatory approvals to accelerate the commercialization of their autonomous driving solutions.