Shares in Chinese humanoid robot maker Unitree have fallen 45% since listing on the Shanghai Stock Exchange last week, raising concerns about excessive speculation, flaws in the IPO system and risks to retail investors. Reuters.
Image source: Unitree Robotics
On the day of listing, Unitree’s share price soared 460% from the IPO price, bringing the company’s market value to US$66 billion. It was previously reported that during the subscription phase, the number of people willing to buy Unitree shares was 8,000 times the supply.
Unitree shares stabilized on Tuesday after three consecutive days of losses, having fallen 45% since last Wednesday.
Unitree’s initial public offering attracted investors amid perceptions of government support as China battles with the United States for technological supremacy. Experts said accelerating listings on Shanghai’s technology-focused Science and Technology Innovation Board also shows government support for the company, as the platform is suitable for high-tech companies in strategic areas of China’s economy.
"Investors are attracted to narratives of technological revolution," Dong Baozhen, chairman of Beijing Lingtong Shengtai Management Co., warned that “all bubbles are destined to burst.”
Reuters analysts said Unitree’s first results showed a sluggish Chinese market rather than a booming Chinese technology industry. Gao Xingkun, a manager of Southern Fund, said that a lot of money has been invested in robot research and development, but no commercial orders have yet been seen.
If you find an error, select it with your mouse and press CTRL+ENTER.
