Hong Kong’s largest crypto exchange sees lukewarm market debut, shares gain 3%

At a time when cryptocurrencies are taking a beating, HashKey shares rose 3% in their debut on the Hong Kong stock exchange on Wednesday after the crypto exchange raised $206 million in its initial public offering.

HashKey, Hong Kong’s largest licensed crypto exchange, raised nearly HK$1.6 billion after pricing its IPO at HK$6.68 per share; this is near the upper end of the marketed HK$5.95 to HK$6.95 range.

While mainland China has imposed a blanket ban on cryptocurrencies since 2021, Hong Kong has been more tolerant towards digital assets.

Key underlying investors include Fidelity, UBS, Chinese investment firm CDH Investments and Cithara Fund. JPMorgan and financial services company Guotai Haitong were among the joint bookrunners.

“Our mission is to make digital assets massively accessible, and what we are doing is creating a cohesive platform to connect our users to the digital asset industry,” HashKey Chief Financial Officer Eric Zhu told CNBC.

“We are sure of that [crypto] Zhu stated that the penetration rate in the Asian market in Hong Kong will catch up with the developments in the United States.

The listing comes amid recent volatility in global cryptocurrency markets after reaching record highs. Bitcoin, the world’s largest cryptocurrency, fell by around 36 percent in about a month after reaching an all-time high of $126,000 in early October. It’s down about 6% so far this year.

Founded in 2018, HashKey operates a licensed digital asset platform offering on-chain services such as currency trading, over-the-counter services, staking and tokenization, as well as asset management solutions for institutional and retail customers.

“This is a milestone for the digital asset and asset management industry in Asia. We believe Hong Kong is establishing itself as a major hub for regulated digital assets in Asia,” said William Ma, CIO of GROW Investment Group.

—CNBC’s Emily Tan contributed to this report.