Shares in Chinese humanoid robot maker Unitree have dropped 45 percent below their initial public offering level after surging on the Shanghai Stock Exchange.
The company saw its valuation jump to 66 billion dollars on its first day of trading before quickly falling by 30 billion dollars. After three losing sessions in a row, the stock stabilized on Tuesday, according to a report by Reuters.
Market experts noted that the dramatic price movements following the initial public offering reflect market overheating rather than long-term strength in the Chinese technology sector.
Market overheating and profit drop
Abraham Zhang of China Europe Capital said that the rapid jump in share prices was driven less by strong business prospects than by efforts of certain market participants to inflate stock prices for quick profits.
Zhang said that investors who secured shares during the initial public offering walked away satisfied, while many small retail investors suffered financial losses. He added that the listing outcome for Unitree was far from the first of its kind in the Chinese capital market and was unlikely to be the last.
The market volatility comes as Unitree reported significant headwinds in its financial documentation. According to the company prospectus, Unitree saw its adjusted net profit fall by 53 percent during the first three months of 2026.
State support and technology rivalry
Analysts noted that strong investor interest in the initial public offering was largely fueled by expectations of state support amid competition between China and the United States for technological dominance.
Analysts added that the accelerated listing on the tech-focused STAR Market was widely interpreted as an official sign of approval from government authorities. The Shanghai-based board was established to give domestic technology companies faster access to capital markets.
Unitree Robotics, based in Hangzhou, is recognized as one of China's prominent developers of humanoid and quadrupedal robots. The company has gained widespread attention for developing advanced robotics designed to compete on a global stage.
Global stock listings in tech and AI
The turbulent debut occurs alongside broader restrictions and movements in the international tech sector. Investors from mainland China and Hong Kong were prohibited from participating in the initial public offering of American space exploration firm SpaceX, which set a record as the largest listing in history.
Further major public listings in artificial intelligence are expected later in the year. Leading US firms Anthropic and OpenAI are expected to go public in the autumn of 2026, while their Chinese rival DeepSeek is also preparing for an initial public offering and could file its paperwork before the end of the year.
