Chinese autonomous driving group Momenta could be set to change course and launch its IPO in Hong Kong rather than New York because of geopolitical concerns.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
U.S. Tensions
According to a Reuters report, Momenta is now opting to debut in the Asian financial hub rather than the streets of New York City because of heightened U.S. – China tensions over trade, politics and the Ukraine war.
Momenta is a leading Chinese supplier of advanced driving assisted system features, making it a rival to Elon Musk’s Tesla’s (TSLA) self-driving technology. The systems can navigate urban traffic under human drivers’ supervision.
According to the report, the company recently informed some of its investors about its plan to potentially list in Hong Kong in 2026. However, the plans are at an early stage and could yet change.
Momenta, backed by investors such as Toyota Motor (TM) and auto parts supplier Bosch, is considering a change in listing venue as it nears completion of a pre-IPO fundraising round. That could involve investors such as Mercedes-Benz and Hyundai (HYMLF).
Details of the IPO, such as the timeline, offering size and valuation are also yet to be finalized.
Just a Momenta
However, Momenta vehemently denied the report.
“Any suggestion that Momenta has informed investors of a confirmed plan to list in Hong Kong in 2026 is untrue,” the company said.
Analysts said that the potential shift in Momenta’s listing venue underscores Hong Kong’s position as the main IPO venue for Chinese companies amid U.S. lawmakers’ threat to delist Chinese firms from American exchanges.
Heightened trade tensions between China and the United States have also prompted a growing number of Chinese companies to favor Hong Kong.
Momenta was founded in 2016 by former Microsoft (MSFT) employee Cao Xudong. It has a research center and will begin tests of level 4 autonomous vehicles in Germany next year with ride-hailing firm Uber (UBER). Its advanced driver assistance systems are already used by global brands including Toyota, Mercedes-Benz, and Audi in China.
What are the Best Chinese Stocks to Buy Now?
We have rounded up the best Chinese stocks to buy now using our TipRanks comparison tool.
