HashKey IPO: China’s Industrial Capital Finds a Crypto Gateway in Hong Kong

Hong Kong’s licensed crypto exchange HashKey will list on the Hong Kong Stock Exchange on December 17, becoming the city’s first publicly traded cryptocurrency exchange.

This move signals 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 opened its public offering on December 9, with subscriptions running through December 12. The price range is set at HK$5.95 to HK$6.95 per share, targeting a total of HK$1.67 billion (approximately $215 million). The company will trade 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 litmus test for Hong Kong’s virtual asset policy framework. Since its 2022 “Virtual Asset Declaration,” Hong Kong has aggressively built out its regulatory infrastructure. This year alone, regulators approved staking services, tightened custody standards, and unveiled stablecoin oversight rules. HashKey’s IPO offers the first objective measure of how capital markets value this regulatory experiment.

The shareholder structure deserves close attention. Lu Weiding, chairman of Wanxiang Group, holds the largest stake, with 43.2%. Wanxiang ranks among China’s largest auto parts manufacturers, generating annual revenue of over 100 billion yuan.

Founder Xiao Feng, who previously built his career in China’s asset management industry before pivoting early to blockchain, holds a 16.3% stake. Notably, Wanxiang and related entities will retain over 60% of voting rights post-IPO, with only 8.7% of shares available for public trading.

With cryptocurrency trading banned on the Chinese mainland, traditional industrial capital has effectively found a regulated gateway into crypto through Hong Kong. This dynamic illustrates the complex relationship between Beijing’s restrictions and Hong Kong’s positioning as a compliant digital asset hub.

Red Ink Piles Up, but Institutional Backers Remain Unfazed

The financials tell a complex story. HashKey has recorded approximately HK$2.9 billion in losses over the past three and a half years, with 2024 losses totaling HK$1.19 billion. Yet trading volume surged from HK$4.2 billion in 2022 to HK$638.4 billion in 2024—a 150-fold increase. This growth attracted nine cornerstone investors, including UBS Asset Management, Fidelity, and CDH, who committed $75 million.

Not everyone is convinced. HashKey’s native token HSK plunged after launch, drawing sharp criticism on Chinese social media. Some investors question backing a loss-making company in a volatile regulatory environment.

HashKey commands over 75% market share in Hong Kong and manages HK$29 billion in staking assets, the largest in Asia. To reduce reliance on trading fees, the company launched HashKey Chain, its own Layer 2 network, and is expanding into real-world asset tokenization.

Whether Hong Kong’s licensed exchange model can compete globally remains an open question. Whether the Chinese capital’s crypto detour through the city proves viable is another question. HashKey’s post-listing performance will provide the first answers—not just for investors, but for regulators and competitors watching closely across Asia.