HashKey’s Hong Kong IPO Draws Strong Demand but Faces a Cautious Market

HashKey Holdings made history on Wednesday as it became the first crypto-native company to list on the Hong Kong Stock Exchange under the city’s virtual asset regulatory framework. 

The debut marked an important moment for Hong Kong’s push to become a global center for regulated digital assets. However, early excitement in the stock quickly faded as investors reacted to market volatility and uncertainty across the cryptocurrency sector.

The company’s shares opened at HK$6.70, just above the IPO price of HK$6.68. In early trading, the stock climbed as much as 6.6%, reaching a high of HK$7.12. That momentum did not last long. 

As trading continued through the morning, the shares fell back and briefly dropped below the offer price. At one point, they touched a low of around HK$6.12 before recovering slightly later in the session.

HashKey raised about US$206 million, or HK$1.6 billion, through the offering. That made it the first cryptocurrency exchange operator to go public in Hong Kong. The listing came at a time when crypto prices have been unstable, and investors have become more selective about companies tied to digital assets. 

While the debut did not produce a strong rally, it placed HashKey at the center of Hong Kong’s evolving digital asset strategy.

Heavy Oversubscription Signals Strong IPO Interest

Despite the uneven trading debut, demand for HashKey’s IPO was extremely strong. According to the company’s filings, the retail portion of the offering was oversubscribed by nearly 394 times. The institutional tranche also saw solid interest, with subscriptions reaching about 5.5 times the shares available.

The IPO was priced near the top of its marketed range of HK$5.95 to HK$6.95. In total, HashKey sold 240 million shares. The deal followed Hong Kong’s standard IPO structure, with a split between local retail investors and international institutions. This approach allowed the company to attract a wide range of investors while staying aligned with local market practices.

Several well-known financial firms participated as cornerstone investors. These included Fidelity, UBS Asset Management Singapore, CDH Investments, and Cithara Fund. Their involvement helped support the offering and added credibility to the listing. JPMorgan and Guotai Haitong were among the joint bookrunners for the deal.

Xiao Feng, HashKey’s chairman and chief executive, said the listing marked an important step for the company. “Listing on the HKEX is a starting point that resembles greater responsibility,” he said. “As a company deeply rooted in Hong Kong, we have always believed that compliance is essential for achieving long-term success and sustainable growth.”

HashKey was founded in 2018 and has since grown into Hong Kong’s largest licensed cryptocurrency exchange. The company secured one of the earliest licenses under the city’s 2022 virtual asset regime. Research cited in its prospectus shows that HashKey accounts for more than 75% of Hong Kong’s onshore digital asset trading volume.

The company’s business extends beyond spot crypto trading. It offers brokerage services, custody solutions, tokenization platforms, and on-chain products such as staking. HashKey also manages billions of dollars in client assets through funds and structured products designed for institutional and high-net-worth investors.

Market Volatility Weighs on the First Day of Trading

HashKey’s stock debut took place during a difficult period for the broader cryptocurrency market. Digital asset prices have swung sharply in recent months after reaching record highs earlier this year. Bitcoin, which climbed above $126,000 in early October, later fell as much as 36% in roughly one month. That decline has affected sentiment toward crypto-related stocks.

At the time of HashKey’s listing, Bitcoin was still trading well below its peak. Other major tokens also showed mixed performance. Ethereum was priced at $2,946.67, with a market capitalization of about $355.65 billion, according to CoinMarketCap. While ETH rose slightly over a 24-hour period, it posted notable losses over longer time frames, reflecting ongoing uncertainty in the market.

These conditions appeared to shape investor behavior during HashKey’s first trading session. After the initial jump, shares reversed course and fell around 3% by midday. The stock later stabilized near HK$6.48, still below its opening price.

HashKey’s performance mirrored a broader pullback in crypto-related equities. Rival exchange operator OSL also saw its shares decline on Wednesday, falling more than 4% by midday. Despite that drop, OSL shares remained up over the past month and over the past six months.

Xiao said short-term price movements did not change his outlook for the industry. “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,” he said.

Speaking during the ceremonial gong-striking at Exchange Square, Xiao emphasized the company’s long-term focus. “The short-term price fluctuations do not distract us from the long-term goal of building a regulated financial ecosystem for digital assets,” he said.

HashKey is still operating at a loss as it continues to invest in compliance, security, and infrastructure. The company’s prospectus shows net losses since 2022. In the first half of 2025, HashKey reported a net loss of HK$506.7 million. 

That was an improvement from the HK$772.6 million loss recorded during the same period last year. Analysts noted that revenue grew more than four times between 2022 and 2024 as the company expanded its services.

Xiao said HashKey will focus on improving cash flow in the near term. At the same time, the company plans to continue investing in areas critical to long-term growth. According to the prospectus, IPO proceeds will be used to upgrade technology infrastructure, expand into new markets, strengthen partnerships, and improve operational and risk management systems.

Regulation, Regional Markets, and the Broader Context

HashKey’s public listing also highlighted Hong Kong’s regulatory approach to digital assets. While mainland China continues to enforce a strict ban on cryptocurrency trading, Hong Kong has taken a different path. City authorities have promoted a licensing framework designed to encourage innovation while managing risks tied to virtual assets.

Xiao addressed this contrast directly. He said mainland restrictions were mainly aimed at stopping fraud and pyramid schemes that used stablecoins. “Hong Kong continues to promote policies regarding digital assets and we have benefited from that,” he said. “We should firmly adhere to ‘one country’, but wisely take advantage of ‘two systems.’”

The debut took place as markets across Asia showed mixed performance. Investors were reacting to new economic data from Japan, where exports rose 6.1% year over year in November. 

That figure exceeded expectations and marked an improvement from the previous month. Exports to Western Europe and the United States increased, while shipments to mainland China declined.

Revised GDP data showed Japan’s economy contracted in the third quarter. That added to uncertainty in the region. Equity markets reflected this mixed outlook. Hong Kong’s Hang Seng Index edged higher, while mainland China’s CSI 300 slipped slightly. Japan’s Nikkei 225 closed higher, South Korea’s Kospi gained ground, and Australia’s S&P/ASX 200 declined.

Oil markets also saw renewed movement. West Texas Intermediate crude rose more than 1% after U.S. President Donald Trump said he would order a “TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS” entering and leaving Venezuela. 

The rebound followed a sharp drop the previous day, when oil prices hit their lowest level since early 2021 amid oversupply concerns and signs of progress toward a peace deal in Ukraine.

Within this environment, HashKey’s debut became a test of investor appetite for regulated crypto platforms. Eric Zhu, the company’s chief financial officer, said the mission remains clear. “Our mission is to make digital assets massively accessible, and what we are doing is to create a compliant platform to connect our users with the digital assets industry,” he said.

Zhu also expressed confidence in long-term regional adoption. “We are confident that the [crypto] penetration rate in Hong Kong, in the Asian market, is going to catch up with what happens in the U.S.,” he said.

While the stock’s first day ended without a sustained rally, HashKey’s listing marked a new phase for Hong Kong’s digital asset sector. As the first crypto-native exchange to go public under the city’s regulatory regime, the company now operates under greater transparency and scrutiny. 

Its performance will be closely watched as regulators, investors, and competitors assess how regulated crypto businesses can function within traditional capital markets.