Introduction – Hong Kong IPO
Chinese autonomous-driving startup Momenta is reportedly shifting its planned IPO from New York to Hong Kong to comply with tightened Chinese listing rules. Sources familiar with the matter told Reuters that Momenta – backed by investors like Toyota and Bosch – is nearing the end of a pre-IPO funding round and exploring Hong Kong as a listing venue.
This move underscores Beijing’s stricter oversight of overseas tech listings and reflects growing U.S.–China tensions that are reshaping where Chinese firms go public.
- Shift to Hong Kong: Reuters reports that Momenta has told some investors it plans to list in Hong Kong in 2026. The company’s approval to list in the U.S. expired in June, making the Hong Kong exchange an attractive alternative.
- Regulatory Context: China has been tightening rules on data-sensitive tech firms and overseas IPOs. Draft regulations even propose banning U.S. listings for companies deemed to hold too much user data. In this climate, Hong Kong’s market – which raised about $20 billion in Chinese IPOs so far in 2025 – has overtaken New York by deal count.
- Investor Interest: Industry sources say Momenta’s latest funding round includes strategic backers like Mercedes-Benz and Hyundai. This global partnership underscores the startup’s strong technology pedigree: its advanced driver-assistance systems (ADAS) are used by Toyota, Mercedes and Audi in China.
Beijing’s Grip on Tech IPOs
China has recently tightened scrutiny of tech companies seeking foreign listings. New draft rules would bar internet firms with large data holdings from overseas IPOs. This regulatory clampdown came after high-profile probes (for example, into Didi after its U.S. IPO) and signals Beijing’s intent to keep control over strategic tech assets.
As Reuters notes, Hong Kong has become the “primary offshore fundraising venue” for Chinese firms as U.S. lawmakers even threaten to delist Chinese companies from American exchanges.
In practical terms, Chinese tech listings have gravitated to Hong Kong. According to market data, 230 companies have filed for new or second listings in Hong Kong this year, mostly Chinese issuers.
The total raised (~$20 billion) already far exceeds 2024’s $11.3 billion. By contrast, Chinese companies have garnered just $776 million in U.S. IPOs this year. As one analyst observes, Hong Kong’s deep capital pools and dual-currency market make it a “safer and more lucrative” venue for ambitious Chinese startups .
Momenta’s IPO Plans and Global Partnerships
Momenta, founded in 2016 by former Microsoft engineer Cao Xudong, develops high-level autonomous-driving software. Its tech can navigate urban traffic under human supervision and is considered on par with systems from Tesla and Mobileye.
The company announced plans to begin Level-4 autonomous vehicle trials in Germany with Uber in 2026, highlighting its international expansion.
According to Reuters, Momenta informed investors about a possible Hong Kong listing, but the plan is still tentative. A company spokesperson told reporters that it “has not made any final decision” on IPO timing or venue.
Even so, global investors are keen: recent reports suggest Mercedes, Hyundai and others are lined up to join Momenta’s next funding round. This strong interest reflects confidence in China’s self-driving startup scene and Momenta’s links to major automakers worldwide.
Hong Kong’s IPO Resurgence
Hong Kong’s stock market is enjoying a tech IPO boom thanks to this trend. Fueled by an influx of Chinese listings, HKEX overtook the New York Stock Exchange in IPO volume this year. Top-tier exchange data show Hong Kong has handled more deals (IPO plus secondary listings) than any other venue so far in 2025.
Industry observers credit the surge to Chinese firms seeking Hong Kong’s more stable regulatory environment.
For international investors, the Hong Kong IPO pipeline offers fresh opportunities. The city’s deep capital markets and global investor base have helped raise over $20 billion in Chinese tech offerings year-to-date.
With Beijing signaling support for offshore listings under a regulated framework, Hong Kong’s role as a bridge between Chinese companies and the world economy is likely to strengthen further.
Key Takeaways: Momenta’s shift toward Hong Kong underscores China’s recent focus on controlling where tech companies list their shares. Hong Kong’s market has surged as a result, outpacing traditional centers like New York in supporting Chinese IPOs.
While Momenta has not confirmed the move, its global backers see the Hong Kong listing as a way to tap foreign capital while aligning with Beijing’s new rules.
Frequently Asked Questions
Why is Momenta shifting its IPO to Hong Kong?
Sources say Momenta’s leaders are moving the IPO to Hong Kong to comply with new Chinese regulations on tech listings. Hong Kong offers a more favorable environment amid tightened U.S.-China tensions.
When will Momenta hold its IPO?
Momenta is reported to target a 2026 IPO in Hong Kong. However, the company hasn’t finalized any date or details and treats the plan as early-stage (no official confirmation yet).
What does Momenta do?
Momenta is a Chinese startup developing advanced driver-assistance and autonomous driving systems. Its technology, backed by investors like Toyota and Bosch, helps vehicles navigate urban environments under human supervision.
How is this news related to U.S.-China tensions?
Recent trade tensions and U.S. regulatory pressures have made Hong Kong more attractive for Chinese IPOs. Washington has discussed delisting Chinese firms from U.S. exchanges, so many companies are preemptively choosing Hong Kong instead.
Does Momenta confirm the IPO move?
Not officially. Momenta has stated it “has not made any final decision” on its IPO or listing venue. The shift to Hong Kong remains a reported plan under discussion, not a done deal.
Author’s Note:
I compiled this story from Reuters and other trusted media sources. Since Momenta’s IPO plans are still unofficial, I’ve used terms like “reportedly” and “sources say” to reflect that uncertainty. This article is based on current reports and may be updated as new information emerges.