Global Market: Unitree’s 45% share slump raises bubble concerns after blockbuster Shanghai debut

Shares of Chinese humanoid robot maker Unitree have fallen about 45% since its Shanghai debut last week, raising concerns over speculative excess, retail investor losses and weaknesses in China’s initial public offering system, Reuters reported.

Unitree, one of the world’s largest producers of quadruped and humanoid robots, surged more than fivefold on its first trading day on the Shanghai Stock Exchange. The rally briefly pushed its valuation to about $66 billion before the company lost roughly $30 billion in market value during the subsequent selloff.

According to Reuters, the sharp swings have intensified debate over whether investor enthusiasm for artificial intelligence and robotics has moved far ahead of the companies’ underlying fundamentals.


Unitree shares steadied on Tuesday after falling for three consecutive sessions, extending the losses from their debut to around 45%.

The reversal could serve as a warning for other Chinese technology companies preparing to list as Beijing promotes domestic innovation and technological self-sufficiency. It also underscores the challenge for policymakers of supporting strategic industries while preventing excessive speculation in equity markets.

Unitree’s debut had been closely watched as a potential indicator for a growing group of Chinese robotics companies seeking stock-market listings.

The company’s blockbuster debut came despite signs of weaker profitability. According to its prospectus, Unitree’s adjusted net profit fell 53% to 40 million yuan ($5.95 million) in the first three months of 2026.

Unitree has gained global attention for robots capable of running, dancing and performing martial arts, but its commercial applications remain relatively limited. The company competes with Tesla and Boston Dynamics, which is owned by Hyundai Motor Group.

Unitree shares closed 460% above their IPO price on their first trading day, compared with an average first-day gain of 226% for newly listed Chinese companies over the past three years, according to Reuters.

Read more: Global Market: Shein valuation falls 70% from peak as Hong Kong IPO targets $1.77 billion

Retail investors face the fallout
The dramatic price swings have also renewed criticism of China’s IPO mechanism, particularly the potential for early investors and major shareholders to benefit from sharp post-listing gains while retail investors assume greater risks in the secondary market.

Analysts and market participants cited by Reuters said the lack of effective short-selling pressure can allow heavily overvalued newly listed stocks to remain detached from their fundamentals for extended periods.

Unitree’s rapid listing on Shanghai’s technology-focused STAR Market was another factor that attracted investor interest. The exchange is designed for technology-focused companies operating in areas considered strategically important to China.

The IPO was also seen by some investors as benefiting from Beijing’s push to strengthen domestic technology capabilities amid intensifying competition with the United States.

Unitree was not alone in attracting speculative interest. Chinese memory-chip maker CXMT saw its shares jump 466% on their Shanghai debut last month, highlighting the appetite for companies linked to strategic technology sectors.

However, regulatory scrutiny has kept the pace of new listings relatively restrained. Only 21 companies went public in Shanghai during the first seven months of the year, compared with 104 in Hong Kong, according to the data cited by Reuters.

Questions over IPO pricing
China’s stock exchanges play a significant role in reviewing prospective listings and providing guidance on IPO pricing. Critics argue that this can limit the ability of investment banks to adjust offer prices when investor demand is exceptionally strong.

The wide gap between Unitree’s IPO price and its opening-market valuation has consequently prompted questions over whether the initial offering price was too low or the debut valuation was excessively high.

Some investors and analysts argue that the volatility reflects broader speculative behaviour in China’s technology market rather than a fundamental reassessment of the long-term potential of robotics.

Others maintain that investors should take a longer-term view because robotics remains an emerging industry with significant research and development requirements. Commercial adoption, however, has yet to reach the scale needed to support the valuations attached to some companies.

Unitree’s experience could therefore become an important test for the next wave of Chinese technology IPOs. While Beijing continues to encourage investment in artificial intelligence, robotics, semiconductors and other strategic sectors, the company’s dramatic rise and subsequent decline demonstrate the risks of allowing technological optimism to overwhelm traditional measures of profitability and valuation.

The episode has also highlighted the uneven distribution of IPO gains, with early successful applicants potentially benefiting from sharp listing-day rallies while retail investors who enter later can be left exposed to steep losses.

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