Chinese humanoid robot maker Unitree has experienced a dramatic 45% decline since its Shanghai debut last Wednesday, raising serious concerns over speculative excess and retail investor risks in China's technology market. The company's shares had initially surged 600% on their IPO debut, raising ₹7,450 crore from the ₹150.80 yuan offer price, before briefly valuing the company at $66 billion. However, the stock has since lost roughly $30 billion in market value during the subsequent selloff, with shares closing 460% above their IPO price on the first trading day, compared with an average first-day gain of 226% for newly listed Chinese companies over the past three years. According to Business Standard, the wild swings have intensified debate over whether investor enthusiasm for artificial intelligence and robotics has moved far ahead of the companies' underlying fundamentals.
Despite the strong market performance, CEO Wang Xingxing has revised his timeline for humanoid robot breakthrough, now estimating it could arrive within two to three years if progress accelerates, or within five to 10 years at the latest. As reported by The Economic Times, Wang said the industry is edging towards a 'ChatGPT moment' for robot brains, referring to the global AI boom sparked by OpenAI's launch of ChatGPT in 2022. However, he noted that a major software breakthrough could arrive within two to three years in a bullish scenario, or within five to 10 years at the latest. The company's biggest current investment remains in world models, which Wang said is 'lagging behind' in real-world application of physical AI models. According to The Economic Times, Wang outlined what he considers a critical tipping point for the robot industry, saying the industry is nearing a breakthrough where robots can be placed in unfamiliar environments and complete most tasks through simple voice or text instructions.
Unitree's spectacular debut came despite concerning signs of weaker profitability, with the company's adjusted net profit falling 53% to 40 million yuan ($5.95 million) in the first three months of 2026, according to its prospectus. The company's robots have drawn attention for running, dancing and performing martial arts, but Unitree has had little success in broader commercial applications. As reported by Business Standard, the blockbuster debut came even as Unitree's first-half profit showed signs of a downshift, with the company competing against Tesla and Hyundai Motor Group-owned Boston Dynamics. 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.
The dramatic price swings have 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. According to Business Standard, analysts and market participants cited the lack of effective short-selling pressure as allowing heavily overvalued newly listed stocks to remain detached from their fundamentals for extended periods. Abraham Zhang, chairman of venture capital firm China Europe Capital, said the debut performance was not fuelled by rosy prospects but by investors seeking to pump up shares for later dumping at lofty prices. A retail investor who lost money on Unitree said in a blog post that he supports Chinese innovation, but "the rapid concentration of wealth cannot be built on the pains of retail investors." The reversal could serve as a warning for other Chinese technology companies preparing to list as Beijing promotes domestic innovation and technological self-sufficiency.
