Chinese regulators are taking steps to curb the initial public offerings (IPOs) of humanoid robot manufacturers due to concerns regarding high company valuations and the quality of their revenue. Sources familiar with the matter informed Reuters.

According to these sources, authorities are employing informal guidelines, referred to as "window guidance," to delay specific IPOs.

One insider stated that IPOs for companies in this sector have effectively been put on hold, while another described the situation as a temporary slowdown within the industry, emphasizing that there is no formal ban in place.

The China Securities Regulatory Commission did not respond to Reuters' inquiry.

Previously, The Information reported that the agency had unofficially informed several investment banks and firms about tightening the requirements for the public offerings of humanoid robot manufacturers.

As per Reuters' sources, a significant factor contributing to this move was the stock volatility experienced by Unitree Robotics following its debut on the STAR Market of the Shanghai Stock Exchange on August 19.

The company priced its shares at 150.8 yuan each, valuing it at around 61 billion yuan ($9 billion), and raised 6.1 billion yuan ($905 million). Retail investor demand exceeded the offering by more than 8,000 times.

On its first trading day, Unitree's shares closed at 845 yuan, representing a 460% increase from the IPO price, with prices reaching as high as 1,100 yuan at the beginning of the session.

By September 21, the shares had dropped 55% from their peak value.

Stock performance of Unitree Robotics (Yushu Technology) on the STAR Market. Source: Yahoo Finance.

At least six other Chinese humanoid robot manufacturers, including Deep Robotics, X Square Robot, and AgiBot, are preparing for their own IPOs.

Regulators Examine Revenue Sources

Authorities are particularly scrutinizing the revenue generated by robotics companies from projects supported by local governments.

A source for Reuters pointed to data collection centers where robots are trained and joint ventures with government entities, where state organizations sometimes cover 80-90% of initial investments.

Such projects provide manufacturers with orders, boost revenues, and assist in meeting listing requirements. Regulators are evaluating whether these revenues reflect sustainable demand from independent customers.

According to an industry insider, the valuation of some manufacturers could drop by 60-70% if revenues related to data collection centers were excluded.

Earlier, Shao Tianlan, the head of Mech-Mind Robotics, also asserted that some highly valued companies in the embodied AI sector are using data collection centers, related-party transactions, and other, in his view, unsustainable revenue sources to inflate their earnings.

China Continues to Support Robotics

The slowdown in IPOs does not indicate a withdrawal by Beijing from promoting humanoid robots. Authorities view embodied AI—systems capable of perceiving their environment and interacting with the physical world—as a strategic priority.

Market participants surveyed by Reuters noted a shift in investor focus from showcasing robotic capabilities to actual implementation, order volumes, and the commercial viability of companies.

On August 24, the Ministry of Industry and Information Technology of China published a draft national standard system for humanoid robots.

This document outlines the development of at least 100 key standards by 2028, covering requirements for technologies, systems, applications, testing, and safety. The implementation and promotion of these standards are expected to involve over 200 companies.

Despite the tightening of policies regarding robotics IPOs, Chinese companies continue to actively raise capital overall.

According to data from LSEG provided to Reuters, mainland Chinese companies have raised $148.9 billion through stock and convertible securities offerings since the beginning of 2026, marking a 59% year-on-year increase. The technology sector accounted for 41% of this total.

Notably, in June, analysts at Morgan Stanley raised their forecast for humanoid robot shipments from China for 2026 from 28,000 to 50,000 units.