Unitree shares have fallen roughly 45% since the Chinese humanoid robot maker surged more than fivefold in its Shanghai debut, intensifying concerns about bubble risk, retail investor losses and flaws in China’s initial public offering system. The stock’s valuation briefly reached $66 billion before later losing $30 billion, prompting questions over whether enthusiasm for artificial intelligence and robotics has outpaced the company’s fundamentals. Unitree shares steadied on Tuesday after three consecutive sessions of declines. The company, one of the world’s largest producers of quadruped and humanoid robots, reported adjusted net profit down 53% to 40 million yuan ($5.95 million) in the first three months of 2026. Its shares closed 460% above the IPO price on debut, compared with an average first-day gain of 226% for newly listed Chinese stocks over the past three years. Analysts say China’s IPO pricing guidance, limited short-selling and perceived state support can leave overpriced listings without immediate market resistance, shifting risks toward retail investors. Unitree’s fast-tracked listing on Shanghai’s STAR Market (a board for hard-tech innovators) was viewed by investors as a sign of government backing. The debut was expected to influence other Chinese technology companies preparing to list, while its reversal highlights the challenge of supporting strategic industries without triggering market frenzy.