Unitree's post-IPO plunge hints at potential unraveling of China's humanoid robots market

Unitree Robotics (SHA: 688001) traded under 500 yuan a share for the first time on Thursday. 

That decline erases more than 240 billion yuan of paper value behind the Chinese humanoid maker since its debut peak roughly three weeks ago and contributes to the fears that there is a bubble in the country’s robot sector.

Why did Unitree Robotics stocks fall?

When Unitree listed on Shanghai’s STAR Market on August 19, its shares were priced at 150.80 yuan and finished the first session at 845 yuan, representing a gain of more than 460%. During intraday trading, the stock touched 1,100 yuan, briefly raising the company’s value to roughly 445 billion yuan, or about $66 billion.

However, that peak has not held. The stock ended the previous trading session at 513.93 yuan (about $72.10), roughly 39% below its first-day closing price, and 53% below its first-day high.

On Thursday, it broke 500 yuan, dropping close to 3% to leave a market capitalization near 202 billion yuan. When compared to the 445-billion-yuan peak, more than 240 billion yuan in value has evaporated in about three weeks.

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