Shares of Chinese robotaxi leaders Pony AI (HK:2026) and WeRide Corp (NASDAQ:WRD) dropped sharply during their highly anticipated Hong Kong trading debut on Thursday, despite raising a combined $1.2 billion through their initial public offerings. Pony AI shares plunged by as much as 11% in early trading, while WeRide opened down 8%, underperforming the Hang Seng Index, which rose 0.5% on the back of a rebound in technology stocks.
Pony AI secured around $863 million from its listing, while WeRide raised about $308 million, marking two of the biggest IPOs in the autonomous driving sector this year. However, the weak debut reflects growing investor caution toward AI-driven technology stocks, amid mounting concerns over an artificial intelligence bubble that has inflated valuations across the market.
The slump also followed losses in their U.S.-listed shares overnight on Wednesday, suggesting a broader sentiment shift among global investors toward self-driving technology firms. Despite the initial drop, both Pony AI and WeRide remain key players in China’s rapidly evolving autonomous vehicle industry, which continues to attract long-term interest from investors betting on the future of robotaxi and AI mobility solutions.
Their listings also highlight Hong Kong’s emergence as a leading global IPO hub. According to KPMG data, Hong Kong IPO fundraising surged to $23.6 billion in the first nine months of 2024, up from $7.2 billion a year earlier — surpassing New York and the Nasdaq as the top destination for new listings.
While Pony AI and WeRide’s stock performances may signal short-term volatility, their market debuts underscore the strong momentum and investor appetite driving China’s autonomous driving and AI technology sectors forward.
