HONG KONG/SHANGHAI — A roughly 45-percent slump in the shares of Unitree, China’s best-known humanoid robot maker, since a more than fivefold jump on its Shanghai debut has triggered concerns about bubble risk, retail investor losses and flaws in the initial public offering (IPO) system.
The wild swings in Unitree’s valuation — soaring to $66 billion at one point and later plunging by $30 billion — have led to questions about whether enthusiasm for AI and robotics has outpaced fundamentals.The post-listing sell-off in the company, one of the world’s largest producers of quadruped and humanoid robots, has also led to soul-searching over China’s listing mechanism, which some analysts say distorts prices.Unitree shares steadied on Tuesday after three consecutive days of decline that took their losses to 45 percent since their debut on Aug. 19.The sharp reversal could become a cautionary tale for other Chinese tech companies looking to take advantage of Beijing’s “self-sufficiency” drive and IPO opportunities. It also highlights the challenge authorities face in boosting strategic industries without causing a market frenzy.Unitree’s debut was expected to set the tone for a slew of domestic rivals preparing to come to market.“Investors were carried away by the technology revolution narrative,” said Dong Baozhen, chairman of Beijing-based asset manager Lingtong Shengtai, cautioning that “all bubbles are doomed to burst.”Unitree’s debut performance is a sign of market froth, rather than prosperity in China’s tech sector, which has gained prominence over the past year during the country’s intense tech rivalry with the US.The blockbuster debut came even as Unitree’s first-half profit showed signs of a downshift. The company’s robots have drawn attention for running, dancing and performing martial arts, but Unitree has had little success in broader commercial applications.Its debut performance “was not fueled by a rosy prospect, but a desire by some to pump up the shares so as to dump them later at lofty prices,” said Abraham Zhang, chairman of venture capital firm China Europe Capital.Unitree reported adjusted net profit fell 53 percent to 40 million yuan ($5.95 million) in the first three months of 2026, according to its prospectus.Shares of Unitree, which competes with Tesla and Hyundai Motor Group-owned Boston Dynamics, finished up 460 percent on its debut. That compares with an average first-day gain of 226 percent for newly listed stocks in China over the past three years.
