Pony Ai, WeRide shares tank as Hong Kong investors digest rush of listings

Core Viewpoint - The stocks of Pony Ai and WeRide fell approximately 10% each on their trading debut in Hong Kong, attributed to oversupply of new listings and their performance in overseas markets [1][2]. Group 1: Company Performance - WeRide shares closed down 10% from their issue price, while Pony Ai stock lost 9.3% after raising nearly $1.2 billion in separate public offerings [1][4]. - Pony Ai raised about $863 million, and WeRide raised nearly $308 million in their share offerings [4]. - WeRide's retail tranche was oversubscribed by more than 77 times, indicating strong interest among investors [4]. Group 2: Market Context - The performance of these stocks coincided with a flat debut for electric vehicle maker Seres Group, which lost 4.6% on the same day [2]. - Hong Kong's equity capital markets have become the most active globally this year, raising $31.25 billion in initial public offerings and secondary listings [2][3]. - The concentration of new listings has led to reduced available capital for each listing, impacting share performance [3]. Group 3: Future Plans - Pony Ai plans to use the funds raised for large-scale commercialization and business expansion, with the CEO expressing confidence in long-term stock performance despite short-term fluctuations [5][6]. - WeRide intends to utilize its listing proceeds for hiring talent, enhancing computing capabilities, global expansion, and establishing a sales network [6].