Unitree shares fall 45% after Shanghai debut as bubble fears mount
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Unitree, China's best-known humanoid robot maker, has seen its shares fall about 45% since a more than fivefold jump on its Shanghai debut last Wednesday. The slump has triggered concerns about bubble risk, retail investor losses, and flaws in China's IPO system. The reversal comes even as Unitree's first-half profit showed signs of a downshift.
Key Facts
- Unitree shares fell about 45% since their Shanghai debut last Wednesday, after a more than fivefold jump on the first day.
- Unitree's valuation soared to $66 billion at one point and later plunged by $30 billion.
- Unitree reported adjusted net profit fell 53% to 40 million yuan ($5.95 million) in the first three months of 2026.
- Unitree shares finished up 460% on their debut, compared with an average first-day gain of 226% for newly listed stocks in China over the past three years.
Post-Listing Slump
Unitree shares steadied on Tuesday after three consecutive days of decline that took their losses to 45% since their debut last Wednesday. 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 selloff 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.
IPO System Concerns
Loopholes in China's IPO system have allowed major shareholders to cash in and make a fortune, while shifting risks to mom-and-pop investors who get involved in secondary market trades, according to venture capitalist Abraham Zhang. Zhang, chairman of China Europe Capital, said Unitree's debut performance "was not fuelled by a rosy prospect, but a desire by some to pump up the shares so as to dump them later at lofty prices." Dong Baozhen, chairman of Beijing-based asset manager Lingtong Shengtai, said investors were carried away by the technology revolution narrative, cautioning that "all bubbles are doomed to burst."
Market Impact
Unitree's debut was expected to set the tone for a slew of domestic rivals preparing to come to market. 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. 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 U.S.
2 sources
Unitree shares fall 45% after Shanghai debut as bubble fears mount
