The licensed cryptocurrency exchange in Hong Kong, HashKey, will be listed on the Hong Kong Stock Exchange on December 17, becoming the city's first publicly listed cryptocurrency exchange.
This move marks the formal entry of traditional Chinese industrial capital into the digital asset market.
Hong Kong's Web3 ambitions face their first market test
HashKey Holdings has opened its public offering on December 9, with subscriptions lasting until December 12. The price range is set at HK$5.95 and HK$6.95 per share, aiming to raise a total of HK$1.67 billion (approximately $215 million). The company will be listed under the stock code 3887, with JPMorgan and Guotai Junan International serving as joint sponsors.
This listing represents more than a corporate milestone: it serves as a testing ground for Hong Kong's political framework on virtual assets. Since its 'Virtual Asset Declaration' in 2022, Hong Kong has aggressively built its regulatory infrastructure. This year alone, regulatory authorities have approved staking services, strengthened custody standards, and unveiled stablecoin oversight rules. HashKey's IPO offers the first objective measure of how capital markets evaluate this regulatory experiment.
The shareholding structure deserves special attention. Lu Weiding, chairman of Wanxiang Group, holds the largest share at 43.2%. Wanxiang is among the largest auto parts producers in China, generating annual revenues exceeding 100 billion yuan.
Founder Xiao Feng, who previously built his career in China's wealth management industry before early pivoting to blockchain, holds a 16.3% stake. Notably, Wanxiang and its related entities will retain over 60% of the voting rights after the IPO, with only 8.7% of shares available for public trading.
With cryptocurrency trading banned in mainland China, traditional industrial capital has effectively found a regulated gateway into the crypto world through Hong Kong. This dynamic illustrates the complex relationship between Beijing's restrictions and Hong Kong's positioning as a compliant digital asset hub.
Imbalances are increasing, but institutional supporters remain unfazed
The financial data tell a complex story. HashKey has reported losses of about HK$2.9 billion over the past three and a half years, with losses for 2024 amounting to HK$1.19 billion. However, trading volume has surged from HK$4.2 billion in 2022 to HK$638.4 billion in 2024 – a 150-fold increase. This growth has attracted nine leading investors, including UBS Asset Management, Fidelity, and CDH, who have committed $75 million.
Not everyone is convinced. HashKey's native token, HSK, plummeted after launch, attracting severe criticism on Chinese social media. Some investors doubt supporting a company that generates losses in a volatile regulatory environment.
HashKey holds over 75% of the market share in Hong Kong and manages HK$29 billion in staking assets, the highest in Asia. To reduce dependence on trading fees, the company has launched HashKey Chain, its Layer 2 network, and is expanding its real asset tokenization activities.
It remains an open question whether the licensed exchange model in Hong Kong can compete globally. Whether the path of Chinese capital into crypto through the city will prove profitable is another question. HashKey's performance after the listing will provide the first answers, not only for investors but also for regulators and competitors watching closely across Asia.
