China slows humanoid robot IPO rush as hype outruns reality

Chinese regulators are curbing the surge of humanoid-robot companies eyeing stock market listings, as authorities scrutinize whether inflated valuations and revenue linked to state-backed projects reflect genuine commercial demand, according to people familiar with the matter. The regulatory slowdown stems primarily from Unitree Robotics, a maker of humanoid and quadruped robots, whose shares surged more than fivefold in Shanghai after its debut a month ago before plummeting 55% from its peak.

Regulators have employed informal guidance to curb some humanoid-robot listings, though some describe it as a sector-specific deceleration rather than a formal ban. The China Securities Regulatory Commission did not comment on the matter. The move underscores Beijing's attempt to temper investor enthusiasm for one of China's most coveted investment themes without undermining a technology the government has designated a national priority.

The China Securities Regulatory Commission reportedly issued informal guidance to investment banks and firms, indicating a higher bar for approving humanoid IPOs. Venture capitalist Leo Wang noted that investment in the robotics sector has been likened to a campaign-style innovation, spurred by government support for embodied intelligence — AI systems capable of perceiving and acting in the physical world.

Some startups have attracted dozens of investors within weeks, bypassing conventional due diligence. However, regulators are closely examining whether revenue from government-backed projects can sustain long-term growth, as some companies' valuations could plummet by 60% to 70% if such revenue were eliminated.