HashKey shares ended the session at HK$6.67, down 0.15% from the offer price of HK$6.68. The stock had an eventful debut, rising as much as 6.6% to HK$7.12 before reversing course and falling 8.4% to an intraday low of HK$6.12. By comparison, the benchmark Hang Seng Index gained 0.9% on the day.
Founded in 2018, HashKey provides a broad range of digital asset services, including asset management, brokerage and tokenisation, and operates Hong Kong’s largest licensed cryptocurrency exchange. Its listing marks the first IPO by a crypto-focused company in the city.
Investor appetite for the offering was strong, according to the company’s filings. The institutional tranche of the IPO was 5.5 times oversubscribed, while demand from retail investors exceeded available shares by nearly 394 times.
The listing comes at a time of heightened volatility in global cryptocurrency markets. Major digital assets have swung sharply in recent months after reaching record highs earlier in the year. Bitcoin, the world’s largest cryptocurrency, fell as much as 36% in roughly a month after hitting an all-time high of over $126,000 in early October.
Despite the near-term turbulence, HashKey’s chairman and chief executive, Xiao Feng, said management remains confident about the long-term outlook for the sector.
“My confidence is only growing stronger and I am more optimistic than 10 years ago because there’s more regulation and compliance guidelines for us to follow, which will allow the industry to grow further,” Xiao told reporters on Wednesday.
Cryptocurrency trading was banned in mainland China in 2021, and authorities have recently renewed warnings about risks associated with virtual assets. However, Hong Kong, which operates under a separate economic and regulatory system, has taken a more supportive stance as it seeks to position itself as a global financial and digital asset hub.
Xiao said mainland China’s measures were aimed at curbing fraud and pyramid schemes involving stablecoins and were unrelated to Hong Kong’s regulatory approach.
“Hong Kong continues to promote policies regarding digital assets and we have benefited from that,” he said, adding that companies should “firmly adhere to ‘one country’, but wisely take advantage of ‘two systems.’”
HashKey remains loss-making and will prioritise cash flow over near-term profitability, Xiao said, while continuing to invest as the industry develops. According to its prospectus, the company plans to use IPO proceeds to strengthen technology infrastructure, expand markets, build partnerships, and enhance operational and risk management capabilities.
Hong Kong Financial Secretary Paul Chan attended HashKey’s listing ceremony, underscoring official support for the city’s digital asset ambitions.
The debut comes amid a broader revival of Hong Kong’s IPO market. A number of companies are expected to list in December, and the exchange is on track for its strongest year since 2021, with more than $34 billion raised from new listings so far, according to LSEG data.