China pauses humanoid robotics IPOs amid valuation and demand concerns
China has hit pause on new IPOs for humanoid robotics companies, worried that their sky-high valuations are mostly built on government-backed deals, not real demand.
This move comes a month after Unitree Robotics's shares tanked 55% from its peak following a much-hyped debut in Shanghai a month ago.
Beijing still sees big potential in the tech but wants to keep things realistic with some informal "window guidance."
Local government contracts inflate robotics valuations
Some robotics firms rely heavily on revenue from local-government-backed projects like robot data-collection centers, which can make their numbers look way better than they actually are.
If you take away revenue associated with data-collection centers, company valuations could drop by as much as 70%.
Recent stock drops, like Mech-Mind Robotics falling nearly 20% this month, show just how shaky things can get when hype outpaces real-world demand.