Unitree Shares Fall About 45% From Peak After Listing, Sparking Bubble Concerns

According to Reuters, Chinese robotics maker Unitree has seen its shares fall about 45% from their peak on the first day of trading on Shanghai's STAR Market, after its market value once surged to $66 billion before retreating by roughly $30 billion, raising concerns over bubble risks, retail investor losses, and the IPO mechanism. The stock closed up 460% on its debut, far exceeding the average first-day gain of 226% for new listings in China over the past three years, before falling for three consecutive sessions and stabilizing on Tuesday. Unitree is one of the world's leading makers of quadruped and humanoid robots, with products capable of running, dancing, and martial arts, though broader commercialization remains limited, and it competes with Tesla and Boston Dynamics. According to the prospectus, adjusted net profit in the first quarter of 2026 fell 53% year-on-year to 40 million yuan, with profit growth also showing signs of slowing in the first half. The company was listed through a fast-track channel on the STAR Market, which may set a precedent for other domestic peers. Analysts noted that investors were driven by a "tech revolution" narrative, and that first-day performance reflected market sentiment, with the gap between the IPO price and opening price suggesting at least one side was mispriced. Some also argued the rally was more driven by pump-and-dump motives, with short-selling restrictions and retail chasing amplifying volatility. Some institutions believe robotics companies, with heavy R&D spending and orders not yet materializing on a large scale, should not be judged solely on short-term profits, drawing parallels to the early electric vehicle industry.