China slows humanoid robot IPO rush as hype outruns reality

Chinese regulators are curbing the surge of humanoid-robot companies seeking to go public, as concerns arise that inflated valuations and revenue from state-backed projects may not reflect genuine market demand. The slowdown primarily stems from a volatile opening for Unitree Robotics, a maker of humanoid and quadruped robots, whose shares skyrocketed fivefold during its Shanghai debut a month ago before plummeting 55% from their peak.

Regulators have employed informal guidance to slow down some humanoid-robot listings, though no formal ban has been imposed, according to sources familiar with the matter. This move underscores Beijing's efforts to temper investor enthusiasm over one of China's most popular investment themes without undermining a technology the government has deemed a national priority.

China's Securities Regulatory Commission declined to comment on the regulation. The Information first reported that the CSRC had issued informal guidance to investment banks and firms, raising the bar for approving humanoid IPOs. Venture capitalist Leo Wang described the current investment wave in the robotics sector as "campaign-style innovation," driven by policy support and private capital.

However, hype around embodied AI, which enables systems to perceive and act in the physical world, has outpaced that of previous tech booms, with industrial-robot makers shifting their focus towards humanoids and startups commanding rapidly rising valuations. Some founders have attracted dozens of investors within weeks and bypassed standard due diligence processes.

Valuations at some robot companies could fall by 60% to 70% if revenue from state-backed data-collection centers and joint ventures were removed, signalling that the hype may have outstripped commercial reality.