China scrutinizes humanoid robot manufacturers’ listings more strictly after stock collapses and doubts about actual revenues

China is tightening its scrutiny of humanoid robot companies seeking to go public, amid very high valuations and questions over revenue generated from projects backed by local authorities. According to Reuters, some IPOs have been temporarily frozen, although Beijing has not imposed a ban on the entire sector.

The change comes after Unitree Robotics debuted on the Shanghai Stock Exchange. The company’s shares rose more than fivefold on their first trading day, about a month ago, only to later lose 55% from the post-listing peak. The performance has fueled debate over the gap between investor enthusiasm and actual commercial demand.

Authorities are examining more closely revenue from data-collection centers, transactions with related parties, and joint projects with local administrations. In some cases, these authorities are said to have financed 80%-90% of the initial investment. At least six companies, including Deep Robotics, X Square Robot, and AGIBOT, are preparing to list.

Beijing is not abandoning humanoid robots, which are considered a strategic priority in the development of “embodied intelligence.” However, investors are expected to demonstrate that the robots can be used in factories, have independent customers, and generate repeat orders, rather than merely spectacular demonstrations.