Hong Kong: China’s autonomous driving company WeRide Inc. made its trading debut on the Hong Kong Stock Exchange on Thursday, but its shares tumbled almost 8% in early trade, signaling a weak start for one of the most anticipated listings in the region’s technology sector this year. The decline underscored investor caution toward capital-intensive, profit-uncertain autonomous vehicle ventures, even as Hong Kong continues to reassert itself as Asia’s primary fundraising hub.
WeRide’s shares opened below their issue price, falling nearly 8% within minutes of trading, despite the company raising roughly US$308 million in its initial public offering. The fall came on a day when Hong Kong’s broader Hang Seng Index was marginally higher, suggesting that WeRide’s losses were company-specific rather than market-driven.
The company’s debut came alongside that of Pony.ai, another Chinese self-driving technology giant, whose stock also slumped nearly 11% in early trade after raising US$863 million. The twin debuts were meant to showcase the strength and innovation of China’s rapidly evolving autonomous mobility sector, but the weak start instead reflected growing investor skepticism about the industry’s commercial readiness.
Despite the disappointing start, WeRide’s founder and CEO Tony Han remained upbeat, telling reporters that short-term market movements would not alter the company’s long-term strategy. “It’s normal for shares to fluctuate,” Han said. “In the long term, we are very confident in our stock performance and our ability to scale autonomous driving globally.”
WeRide plans to use the proceeds from the IPO to expand its commercial operations, strengthen research and development, and accelerate the rollout of self-driving services both within China and abroad. The company has been conducting pilot projects across several Chinese cities and has partnerships with global automakers to integrate its driverless technology into public transport and logistics fleets.
Meanwhile, Pony.ai’s leadership also downplayed the initial slump in its shares. Founder and CEO James Peng said the funds raised would be channeled into “large-scale commercialization” of the company’s autonomous driving technologies, adding that short-term fluctuations would not derail its long-term ambitions.
Pony.ai, backed by investors such as Toyota and Sequoia Capital China, has been at the forefront of China’s autonomous vehicle testing programs. Its concurrent debut with WeRide was seen as a coordinated effort to reinforce investor confidence in the self-driving sector. However, both listings have instead highlighted the risks and uncertainties clouding the industry’s future.
Analysts point out that the lukewarm reception reflects deeper concerns about profitability and regulatory headwinds. The autonomous driving industry remains heavily dependent on long-term capital, and despite significant technological progress, widespread commercial adoption is still years away.
Additionally, Chinese tech companies continue to navigate geopolitical challenges, tighter data regulations, and cautious investor sentiment following years of market volatility. These factors, combined with global interest rate pressures, have made investors more selective about high-growth but high-risk sectors like autonomous driving.
The dual listings come at a time when Hong Kong is experiencing a resurgence in IPO activity, with companies raising more than US$31 billion so far in 2025 nearly triple the amount raised in the same period last year. The city is positioning itself as the key financial bridge for Chinese firms seeking global capital amid strained U.S.-China relations.
However, the disappointing performance of WeRide and Pony.ai may temper the optimism surrounding Hong Kong’s tech-heavy listings. Market observers suggest that while the city remains a preferred listing destination, investor appetite for experimental and capital-intensive sectors is waning in favor of companies with proven profitability and cash flow.
Both WeRide and Pony.ai now face the challenge of turning technological promise into sustainable business performance. Their ability to demonstrate real-world commercial success, scale their services, and navigate China’s evolving regulatory landscape will determine whether they can regain investor confidence.
The muted response from the markets serves as a wake-up call for China’s autonomous driving industry that innovation alone may not be enough to secure market faith. The coming months will test whether these firms can steer through skepticism and accelerate toward long-term growth in a sector still racing to prove its viability.
The twin setbacks for WeRide and Pony.ai highlight the gap between technological potential and investor confidence in China’s autonomous driving sector. While both companies remain optimistic about their long-term prospects, their Hong Kong debut has laid bare the growing demand for financial discipline and practical results in a field long driven by futuristic promises.