Why China’s tech firms could be in for a rude IPO surprise

China's AI and robotics firms face a reality check as they pursue IPOs on the Shanghai Stock Exchange's Star Market, where public market pricing will test the premiums built during private funding rounds. The exchange has clarified listing rules for unprofitable AI companies, while robotics firm Unitree Robotics provides a test case for high-growth humanoid robot companies. Public markets will demand more than capability signals like product performance or policy relevance, imposing discipline and comparables that private markets have not required.

Advertisement Opinion Why China’s tech firms could be in for a rude IPO surprise Public markets will not be swayed by a single big contract or impressive demonstration and will demand more of tech firms aiming for IPOs 3-MIN READ3-MIN Jun Yan has spent two decades working at the intersection of policy, capital and industry in China. A listing path is not a valuation endorsement. China’s artificial intelligence AI and robotics companies are about to find out which parts of their private market premiums can survive public market pricing. The Shanghai Stock Exchange https://www.scmp.com/tech/article/3357495/shanghai-bourse-opens-doors-unprofitable-ai-tech-start-ups-relaxed-ipo-rules?module=inline&pgtype=article has clarified how unprofitable AI large-model companies can apply under the Star Market’s fifth listing standard. The route is meant for companies with strategic technology that might not yet be reaping profits or substantial revenue.A parallel test is taking shape in robotics. Unitree Robotics https://www.scmp.com/tech/tech-trends/article/3354855/unitree-robotics-reports-plunge-first-quarter-profits-days-crucial-ipo-hearing?module=inline&pgtype=article has moved further through the Star Market process, giving investors a more concrete test case for humanoid robots https://www.scmp.com/tech/tech-trends/article/3355993/brilliant-us-public-cheers-dancing-unitree-robots-while-congress-looks-ban-them?module=inline&pgtype=article . Unlike many early-stage tech companies, Unitree is not only selling a promise. It has reported fast revenue growth and profits, though more recent filings point to pressure on margins.These two cases are not the same – that is why they matter together. The AI guidance tests whether strategic tech companies https://www.scmp.com/economy/china-economy/article/3355966/china-orders-central-state-owned-enterprises-double-spending-basic-research?module=inline&pgtype=article can access public capital before reaching conventional financial maturity. Unitree tests whether a high-growth robotics company can carry the expectations built into China’s humanoid robot boom into a stock-market setting https://www.scmp.com/tech/big-tech/article/3355538/unitree-clears-key-hurdle-shanghai-ipo-chinas-humanoid-robot-wave-gathers-pace?module=inline&pgtype=article .Both point to a larger shift. Public markets do not merely provide exit routes for early investors. They create categories, comparables and discipline. That is what private markets should watch. In the recent funding cycle, China’s AI and robotics companies have raised money https://www.scmp.com/business/markets/article/3334021/chinas-ubtech-robotics-eyes-us400-million-hong-kong-share-placement?module=inline&pgtype=article on the basis of capability: product performance, chip access, policy relevance and founder reputation. Those signals can support a funding round. They do not determine a public market multiple.Advertisement Select Voice Select Speed 1.00x