China Slows Humanoid Robot IPOs as Regulators Scrutinise Valuations and Revenue

BEIJING — Chinese regulators are slowing the rush of humanoid-robot companies seeking stock-market listings, amid growing scrutiny over soaring valuations and whether revenues linked to state-backed projects reflect sustainable commercial demand, according to people familiar with the matter.

The regulatory move follows a volatile debut by Unitree Robotics, a major Chinese maker of humanoid and quadruped robots. Its shares surged more than fivefold when they began trading in Shanghai last month but have since fallen about 55 percent from their peak.

Regulators have reportedly used informal guidance to raise the approval threshold for humanoid-robot initial public offerings (IPOs). One source said such listings had effectively been frozen for the time being, while another described the situation as a sector-specific slowdown rather than a formal ban.

The developments reflect efforts to moderate investor enthusiasm surrounding humanoid robotics while maintaining support for “embodied intelligence” — artificial intelligence systems capable of perceiving and interacting with the physical world — which Beijing has identified as a strategic emerging industry.

At least six Chinese humanoid-robot companies are preparing for potential public listings, including Deep Robotics, X Square Robot and AGIBOT. Their plans are now facing greater scrutiny as regulators assess whether projected growth is supported by genuine market demand.

A particular area of concern is revenue generated through projects backed by local governments. According to a person familiar with the sector, robot data-collection centres and joint ventures involving local governments have generated substantial revenue for some companies. Regulators are examining whether such business represents sustainable demand from independent customers.

The scrutiny has also raised questions about company valuations. One person close to humanoid-robot investors estimated that valuations at some firms could decline by 60 to 70 percent if revenue associated with data-collection centres were excluded.

Despite the regulatory caution, investors and industry executives said the measures do not indicate a retreat from humanoid robotics. Instead, greater emphasis is being placed on actual deployment, order volumes and the ability of companies to turn technological demonstrations into commercially viable products.

The shift comes as investment in China’s technology sector remains strong. Mainland Chinese companies have raised $148.9 billion through share sales and convertible offerings so far in 2026, an increase of 59 percent from the same period last year, according to LSEG data cited by Reuters. Technology companies accounted for 41 percent of the total.

The latest developments suggest that China’s rapidly expanding humanoid-robotics industry is entering a phase in which investors and regulators are placing greater emphasis on commercial performance and sustainable business models alongside technological innovation.