Chinese self‑driving start‑ups Pony.AI and WeRide had a disappointing debut on the Hong Kong Stock Exchange, with their shares falling more than 10% after raising over $1.1 billion. Both companies, which were listed in New York last year, are seeking to expand abroad and compete with rivals such as tech giant Baidu. Pony.AI’s shares, priced at $139 each, dropped 14.4% to $119, while WeRide’s shares fell 13.9% from $27.10 to $23.30.
The listings are part of Hong Kong’s push to become a hub for initial public offerings; the city is the world’s largest IPO market this year. Beijing is also actively promoting the autonomous‑driving sector, aiming to cut transportation costs by leveraging artificial intelligence. Frost & Sullivan projects China’s robotaxi services will reach $70 million by 2025, surge to $39.4 billion by 2030, and climb to $183 billion by 2035.
Pony.AI and WeRide plan to use the proceeds from their listings to develop autonomous‑driving technology and solutions. CEOs James Peng and Tony Han reaffirmed their commitment to advancing the self‑driving industry in China and globally. Peng noted that Pony.AI has recorded continuous losses since 2022 but expects to break even by 2028.
Nevertheless, experts have raised safety concerns about driverless technology. Tom Nunlist, a tech‑policy analyst at Trivium China, said the major challenge for the industry in China is the evolving regulatory landscape. Chinese officials aim to accelerate the development of standards for driver‑assistance systems and autonomous driving, focusing on safety and preventing accidents caused by misuse.
The sector’s growth is expected to have significant implications. Robotaxis are projected to constitute a substantial share of China’s shared passenger vehicles by 2035. Listed ride‑hailing firms such as Didi and Caocao have already incorporated autonomous‑driving services into their future growth plans. As the industry evolves, China is likely to play a leading role in shaping the global autonomous‑driving market.
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