Autonomous-driving firms Pony AI Inc. and WeRide Inc. have received approval from China’s securities regulator to list shares in Hong Kong, as renewed delisting risks emerge in the US.
Both companies, which went public last year, received approval to list about 102 million shares each in Hong Kong, the China Securities Regulatory Commission said in separate statements dated Tuesday.
The two Guangzhou-based firms, already listed in the US, are part of a growing cohort of Chinese companies seeking second listings in Hong Kong, which is on track to record its highest initial public offering proceeds in four years.
Pony AI’s American depositary receipts have gained 71% since their debut in November 2024, while WeRide’s have declined 31% since October 2024.
A 2020 US law empowered the Securities and Exchange Commission to delist Chinese firms if American regulators were unable to inspect their audits for two consecutive years. The legislation was passed after the accounting practices of US-listed companies headquartered in mainland China and Hong Kong became a flash point during Donald Trump’s first term.
While those worries eased in 2022, when US officials said they had gained sufficient access to Chinese audit documents, delisting fears have resurfaced following Trump’s return to the White House. His administration is now assessing whether Chinese companies continue to meet auditing standards under the Holding Foreign Companies Accountable Act.
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Hesai Group, which makes lidar sensors used in cars, in September became the first US-listed Chinese firm to debut in Hong Kong amid the delisting risks. Hotel operator Atour Lifestyle Holdings. is also weighing a second float in Hong Kong, Bloomberg News reported in August.
