Pony.ai Shares Fall 14% in Hong Kong Debut as Chinese Autonomous Driving Firms Face Global Headwinds

Chinese autonomous driving firm Pony.ai made a disappointing market debut in Hong Kong on Thursday, with its shares dropping over 14% in early trading. Fellow industry player WeRide also saw its stock decline nearly 12% as both companies began dual trading in the city.

Pony.ai raised HK$6.71 billion (about $860 million) through its listing, while WeRide secured HK$2.39 billion. Both Guangzhou-based startups said the funds will be used to accelerate Level 4 autonomous driving development — a technology that allows vehicles to operate without human intervention under specific conditions.

Pony.ai CEO James Peng said the company plans to use the proceeds to build autonomous-driving infrastructure, including AI-powered parking and charging systems. WeRide CEO Tony Xu Han told CNBC that his firm will invest heavily in AI capabilities and data center capacity to strengthen its technology stack.

Both companies operate robotaxi services in select Chinese cities and aim to expand into new markets such as the Middle East, Europe, and Southeast Asia. However, regulatory approvals remain a key obstacle to broader deployment.

The listings also come amid growing geopolitical and regulatory challenges. Earlier this year, the U.S. government introduced rules restricting Chinese technology in connected vehicles, complicating Pony.ai and WeRide’s ambitions to partner with Uber in the U.S. market. Analysts say the Hong Kong listings serve as a risk diversification strategy, allowing the companies to tap into Asia-based capital while reducing exposure to U.S. market uncertainty.

“Dual listings in Hong Kong help mitigate geopolitical risk and signal long-term commitment to Asian markets,” said Tu Le, managing director at Sino Auto Insights. He added that the listings acknowledge the enormous capital required to scale autonomous driving technologies.

Equity research analyst Rolf Bulk from New Street Research noted that the Hong Kong Stock Exchange’s strategy of clustering tech IPOs reinforces the city’s image as a hub for Asia-focused innovation. The move follows recent listings such as CATL’s $5.2 billion secondary offering, the largest IPO globally this year.

Despite their weak debut, analysts believe Pony.ai and WeRide remain among the global leaders in autonomous mobility. “They’re still at the forefront of the race,” said Le. “Investors should watch how both firms leverage AI and partnerships to gain an edge in global markets.”