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HashKey entered the Hong Kong stock exchange with early gains near 3% before momentum faded, sending shares down 2.1% by press time as investors reassessed valuation and near-term financial performance.
The exchange raised $206 million through its initial public offering after pricing shares at HK$6.68, a level set close to the upper end of the marketed HK$5.95 to HK$6.95 range.
Total subscription interest reached roughly HK$1.6 billion, a notable figure in a market where crypto-related listings remain limited and digital asset sentiment continues to face pressure.
Despite the strong opening demand, trading reflected caution as investors weighed market leadership against ongoing losses and high operating costs tied to compliance and infrastructure.
The IPO attracted a group of prominent cornerstone investors, including Fidelity, UBS, CDH Investments, and Cithara Fund, while JPMorgan and Guotai Haitong served as joint bookrunners. HashKey controls roughly three-quarters of Hong Kong’s licensed crypto trading market, giving the exchange a dominant position within the city’s tightly regulated digital asset ecosystem.
According to its prospectus, the platform processed more than $81.8 billion in trading volume during 2024, reflecting sustained activity from institutional and professional investors. However, the exchange operates under an ultra-low fee structure, with most trading charges set below 0.1%, limiting revenue growth despite rising transaction volumes.
Simultaneously, costs associated with licensing, custody services, compliance systems, and technical infrastructure continued to increase over the recent reporting periods. From 2022 to mid-2025, HashKey reported cumulative net losses of approximately $385 million, while monthly cash burn was still high during the same period.
HashKey has withdrawn from offshore retail markets, including the closure of its Bermuda-registered entity, placing greater emphasis on Hong Kong’s regulatory framework and institutional participation.
Chief Financial Officer Eric Zhu said the firm aims to build a compliant platform that connects users with the digital assets industry while expanding regulated access across Asian markets. Zhu also said crypto penetration in Hong Kong and the broader Asian region could eventually align with levels seen in the United States, though early trading did not reflect that expectation.
Elsewhere in Asia, Japan recorded a contrasting market event as SBI Shinsei Bank shares jumped more than 12% following a 322 billion yen IPO priced at 1,450 yen per share. Japan’s export data showed shipments to Western Europe rose 23.6%, while exports to the United States.
States increased 8.8%, marking the first U.S. export rise since March. Revised figures showed Japan’s economy shrank 0.6% in the third quarter and 2.3% on an annualized basis, while exports to mainland China fell 2.4%.
HashKey was founded in 2018 by Xiao Feng, vice chairman of Wanxiang Group, whose largest shareholder, Lu Weiding, owns nearly 40% of the exchange and holds a board seat.
Wanxiang ranks among China’s earliest ether investors, with Ethereum creator Vitalik Buterin stating the group bought 410,000 ether in 2015 at $1.2 per token.
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HashKey’s Hong Kong IPO raised $206 million and drew major institutional backers, but lost momentum after early gains. Investors weighed its dominant local market share against persistent losses, rising costs, and reliance on Hong Kong regulation. The debut signals cautious optimism while markets wait for clearer paths to profitability.
