Hongโค Kong -โค Shares ofโฃ Chinese autonomous driving firms WeRide and Pony.ai slid in theirโ Hong Kong trading debuts on Wednesday, reflecting broader market concerns and a cautious investor reception too the sector. WeRide fell as much โas 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.
Theโค disappointing start for both companies comes as investor appetite for Chineseโ tech firms remainsโข subdued amid regulatoryโ uncertainty and economic headwinds. both WeRideโ 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 โas a gauge of market confidence in the future of self-driving technology andโข the potential for further โcapital raising to fuel โexpansion and โฃresearch &โ growth.
WeRide, backed by Abu dhabi’s Mubadala Investment Co., raised approximately $363 million in its IPO.โ Pony.ai, supported by Toyota Motor Corp., secured roughly $89 million. Both firms intend to useโฃ the proceeds to fund technology development, expand theirโ operational footprint, and โpursue commercial deployments of their autonomous driving solutions.
WeRide currently operates robotaxi services in several Chinese cities, including Guangzhou,โฃ Shenzhen, and Beijing, and โคis also developing autonomous driving solutions โfor 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 withโข the autonomousโค driving sector, including technological challenges, regulatory hurdles, and the high capital expenditure required for โคscaling up operations,”โค said David Li, an โanalyst โคat Capital Investment group. “Investors โคare adopting a wait-and-see approach, wanting to see more concrete evidence of commercial โฃviability before committing significant capital.”
The IPOs โfollow a period of intenseโ competition in the Chinese autonomous driving market,โ with numerous companies vying for dominance. The Chinese government has beenโ actively promoting the development โฃof autonomous driving technology, viewing it asโค a โคstrategic industry with the โขpotential to drive economic growthโ and enhance national โcompetitiveness.
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 โfuture success. The companies are โexpected to continue investing heavily in research and development, expanding their service areas, and seekingโ regulatory approvals to accelerate theโข commercialization of their autonomous driving solutions.
