China curbs humanoid IPOs after Unitree’s volatile debut

[BEIJING] Chinese regulators are tightening the approval for humanoid startups planning initial public offerings after a volatile debut by industry leader Unitree Robotics, The Information reported on Wednesday (Sep 9).

The China Securities Regulatory Commission has given an informal “window guidance” to some investment banks and firms that it is lifting the bar for approving humanoid startups that plan to go public, the report said, citing people with knowledge of the matter.

These companies must prove they can generate recurring revenue and are on track to narrow their losses or achieve real innovation before approvals can be considered, The Information said.

Chinese financial regulators did not immediately respond to a Reuters request for comment. Reuters could not verify the report.

According to the report, the change in strategy was prompted by factors including a funding frenzy in the private market this year, a long list of companies that have filed for IPOs, and tanking share prices of companies such as Unitree that went public recently.

A roughly 45 per cent slump in the shares of Unitree, China’s best-known humanoid robot maker, since a jump of more than five times in its Shanghai debut has triggered concerns about a bubble, retail investor losses and flaws in the IPO system. REUTERS