Shares of HashKey Holdings, operator of Hong Kong's largest licensed cryptocurrency exchange, fluctuated on their trading debut, as investors shunned risk amid a downturn in both equity and digital asset markets.
Trading under the stock code 3887, HashKey shares first changed hands on Wednesday at HK$6.70, or 0.3 per cent above the offer price of HK$6.68 a share. The stock rose as much as 6.6 per cent before trading 1.1 per cent lower at HK$6.61 at 10.30am.
The firm, one of 11 licensed virtual asset trading platforms in Hong Kong, raised HK$1.6 billion (US$206 million) in the city's first crypto-native initial public offering (IPO). OSL Group, another licensed crypto exchange operator formerly known as BC Technology, was listed in Hong Kong in 2012, long before it pivoted into digital assets.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge , our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
"Today's successful trading on the Hong Kong stock exchange proves that taking a compliant route can also lead to success," said HashKey chairman and CEO Xiao Feng, before striking a ceremonial gong to mark the start of trading. "I believe that, in the long run, following a compliant path actually gives a company greater longevity and more sustainable vitality."
HashKey, founded in 2018, offers crypto transaction facilitation, as well as on-chain, asset management and tokenisation services. Photo: Images/LightRocket via Getty Images alt=HashKey, founded in 2018, offers crypto transaction facilitation, as well as on-chain, asset management and tokenisation services. Photo: Images/LightRocket via Getty Images>
The debut comes as bitcoin, the largest cryptocurrency, sinks deeper into bear-market territory amid a broader risk-off shift driven by an uncertain interest-rate trajectory, profit-taking after record market highs and cascading liquidations of leveraged positions .
The broader stock market in Hong Kong fell to its lowest level in three weeks on Tuesday as investors were concerned at China's deteriorating growth prospects and the US Federal Reserve's interest-rate path.
While acknowledging the short-term volatility in cryptocurrencies, Xiao said he was pretty confident in the prospects of the digital-asset industry. "I'm even more optimistic now than I was a decade ago, as we're seeing new legislation and clearer compliance standards being introduced, which will help the industry move forward sustainably."
He said the firm was seeking cash flow to support its long-term development and investments, hoping to make full use of the growing momentum in the industry.
"With the crypto market still weak, bitcoin failing to rebound amid rate-cut hopes and gold's strength, plus ongoing risks and possible US tax changes ahead, even a licensed player like HashKey will feel the pressure," said Dickie Wong, executive director of research at uSmart Securities, ahead of the stock's debut.
Strict regulations and competition were among the headwinds facing the industry, Wong said.
Beijing, which banned crypto trading in 2021, reiterated its tough stance on virtual currencies and vowed to crack down on illegal activities before HashKey launched its IPO last week.
Hong Kong, however, has been cast as mainland China's offshore testing ground for digital tokens, with regulatory regimes established for exchanges, stablecoin issuers, dealing service providers and custodians.
Xiao said he agreed with mainland authorities' efforts to crack down on pyramid schemes and fraud arising from the misuse of the stablecoin concept. These bad actors "have nothing to do with Hong Kong's stablecoin regulation", he said.
"Hong Kong continues to advance its own digital-asset policies, and we benefit from the strong support of the Hong Kong government in this area."
HashKey, founded in 2018, offers crypto transaction facilitation, as well as on-chain, asset management and tokenisation services. The group dominates Asia's onshore digital asset market, accounting for more than three-quarters of regional trading volume in 2024 and nearly HK$20 billion in client assets.
Despite HashKey's market position, its businesses have remained loss-making since 2022. It reported a net loss of HK$506 million in the first six months of this year, narrowing from around HK$777 million in the same period a year earlier.
HashKey said it planned to use the IPO proceeds to strengthen its technology and infrastructure, driving product innovation and new offerings. It would also seek market expansion and partnerships, and enhance operational and risk-management capabilities.
The IPO sold 240.6 million shares at HK$6.68 each, close to the higher end of the initial price guidance of HK$5.95 to HK$6.95. The retail tranche was oversubscribed nearly 393 times ,while the institutional tranche was oversubscribed five times ,according to the company.
Nine cornerstone investors, including UBS, Fidelity and Chinese investment firm CDH, subscribed to around US$75 million worth of the offered shares.
This article originally appeared in the South China Morning Post (SCMP) , the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
