Two of China’s biggest robotaxi start-ups fell as much as 15% upon listing in Hong Kong on Thursday, as analysts raised concerns about profitability in an increasingly competitive sector, reports the Financial Times. Pony.ai and WeRide, which compete fiercely in China and are both backed by Uber, raised HK$6.7 billion ($862 million) and HK$2.4 billion respectively in their secondary offerings.
The two companies already trade on New York’s Nasdaq, but Chinese technology groups have considered listing closer to home on fears that US President Donald Trump’s administration might pursue delistings of Chinese companies.
Hong Kong has benefited from the dealmaking boom as mainland businesses seek capital in the city. But in contrast to CATL, the battery maker that surged 16% upon listing, the robotaxi start-ups struggled to gain altitude, driven by concerns over profitability and an increasing number of entrants in the sector.