Hong Kong Sees Rise in Tech IPOs as Crypto Regulations Remain Strict

Hong Kong's financial sector is undergoing swift transformation as the city strengthens its reputation as a global hub for technology and innovation. Recent milestones—such as prominent IPOs, increased foreign investment, and heightened regulatory attention on digital assets—highlight the city's strategic shift toward tech-led development in response to changing geopolitical circumstances.

Pony AI, a prominent autonomous driving company from China, initiated its Hong Kong IPO on November 6, 2024, with its valuation possibly surpassing $10 billion. The funds raised are intended to further develop its Level 4 autonomous driving technology and support international expansion. Major investors, including Uber, have pledged $120 million to the international portion of the IPO, and according to a Business Times report, Uber may allocate as much as $100 million to the Hong Kong offering, reflecting its growing partnership with Chinese robotaxi companies (

). This approach mirrors a broader movement among Chinese tech companies to pursue dual listings as a way to address regulatory challenges in the United States.

Sany Heavy Industry Co., a leading manufacturer of excavators, also saw a successful debut on the Hong Kong Stock Exchange, with its share price climbing 4.7% to HK$22.30. The company’s $1.7 billion IPO, supported by investors such as Temasek and BlackRock, demonstrates Hong Kong’s attractiveness as a center for capital raising. The proceeds will be used to grow its international sales network and boost overseas production, as reported by China Daily (

). The recent surge in Hong Kong IPOs—reaching the highest level in four years—shows that investors remain confident in the city’s market stability despite global volatility.

At the same time, regulatory oversight is increasing regarding companies holding cryptocurrencies as part of their corporate reserves. The Securities and Futures Commission (SFC) in Hong Kong has expressed concerns about Digital Asset Treasuries (DATs), which are firms that keep crypto assets on their balance sheets. SFC chairman Kelvin Wong Tin-yau cautioned that DAT company shares often trade at a premium to the value of their crypto holdings, posing risks to investors, according to a Bitcoinist report (

). This comes after reports that the Hong Kong Stock Exchange (HKEX) has blocked DAT strategies for at least five companies due to compliance issues. The SFC’s warnings coincide with companies like MicroStrategy and Bitmine accumulating large amounts of and in their reserves, a trend now facing increased regulatory examination.

The region’s technology industry is also drawing interest from international corporations. Uber’s reported investments in both

AI and WeRide Inc. illustrate the expanding cooperation between American and Chinese autonomous vehicle companies. WeRide, another robotaxi provider based in Guangzhou, is also preparing for a Hong Kong IPO to finance its growth, and these collaborations—including joint ventures in the Middle East and Abu Dhabi—demonstrate a strategic push to speed up the commercial rollout of self-driving technologies.

Nonetheless, obstacles remain. Seyond Holdings, a company specializing in autonomous driving technology, is currently involved in a lawsuit filed by competitor Hesai Group over alleged patent violations related to LiDAR technology. This legal action, initiated just before Seyond’s planned SPAC listing in Hong Kong, could affect its prospects in the public market, according to a Benzinga report (

). Such disputes underscore the intense competition within Hong Kong’s technology sector, where innovation and protection of intellectual property are vital for attracting investment.

As Hong Kong manages these changes, its financial authorities and policymakers are striving to balance innovation with effective oversight. The SFC’s attention to DATs and HKEX’s strict compliance measures are part of a broader initiative to uphold market integrity while encouraging technological advancement. Meanwhile, the increasing presence of Chinese tech companies in Hong Kong’s financial markets reinforces the city’s role as a key link between mainland China and global investors.