The licensed crypto exchange in Hong Kong, HashKey, will be listed on the Hong Kong Stock Exchange on December 17. It is the first publicly traded crypto exchange in the city.
This movement signifies the official entry of traditional Chinese industrial capital into the digital asset market.
The ambition of Web3 in Hong Kong faces its first market test.
HashKey Holdings opened for public offering on December 9, accepting applications until December 12, with a price range between HK$5.95 and HK$6.95 per share, aiming for a total of HK$1.67 billion (approximately USD 215 million). The company will trade under stock code 3887, with JPMorgan and Guotai Junan International as joint sponsors.
This listing is not just a significant milestone for the company but also a test of Hong Kong's virtual asset policy. Since the 'Virtual Asset Declaration' in 2022, Hong Kong has established a comprehensive regulatory framework. This year, regulators approved stringent staking service standards and disclosed guidelines, controlling HashKey's stablecoin IPO as the first measure of how the capital market assesses this experiment.
The shareholder structure is interesting. Lu Weiting, the chairman of Wanxiang Group, holds the largest stake at 43.2%. Wanxiang is one of the largest automotive parts manufacturers in China, with annual revenue exceeding 100 billion yuan.
Founder Xiao Feng, who previously built a career in China's asset management industry before venturing into blockchain, holds 16.3% through Wanxiang, and related entities will maintain voting rights exceeding 60% post-IPO, with only 8.7% available for public trading.
When crypto trading was banned in mainland China, traditional industrial capital sought entry into crypto through Hong Kong, which is clearly regulated. This complex relationship reflects Beijing's constraints and Hong Kong's position as a digital asset hub aligned with regulations.
The red ink is increasing, but institutional supporters remain unfazed
The financial side tells a complex story. HashKey recorded a loss of approximately HK$2.9 billion over the past three and a half years. In 2024, the total loss was HK$1.19 billion, but trading volume increased from HK$4.2 billion in 2022 to HK$638.4 billion in 2024. This growth attracted nine major investors, such as UBS Asset Management, Fidelity, and CDH, which invested USD 75 million.
Not everyone is confident. The native token of HashKey, HSK, dropped after its launch, sparking fierce criticism on Chinese social media. Some investors questioned investing in a company that is losing money in a challenging environment.
HashKey has over 75% market share in Hong Kong and manages staking assets of HK$29 billion, the largest in Asia. To reduce reliance on trading fees, the company has launched HashKey Chain, its own Layer 2 network, and expanded into providing asset tokens in the real world.
The question of whether Hong Kong's licensed exchange district can compete globally remains unanswered, as does whether the diverging paths of Chinese capital through this city will be viable. HashKey's performance post-listing will provide the first answers—not just for investors but also for regulators and competitors closely monitoring across Asia.
