China Robotics Funding Slows to $1.6 Billion in October as Shakeout Fears Grow

The drop follows informal guidance from China's securities regulator that humanoid robot companies need steady revenue and narrowing losses before they can list.

By Nakoda News Desk

1 day ago·2 min read

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Fundraising by Chinese robotics companies slowed sharply to about 11 billion yuan ($1.6 billion) in October, Bloomberg reported on Wednesday. The agency said this points to a cooling of the rush of investment that followed Unitree's humanoid robot showcase at the Spring Festival earlier this year.

The October figure continues a decline seen in other data. Seoul Economic Daily reported last week, citing NE Times and Yicai, that investment in China's humanoid and physical AI companies fell 40.1 per cent to 11.6 billion yuan in September from 19.4 billion yuan in August. Third-quarter investment came to 33.335 billion yuan, the paper said, 28.7 per cent below the quarterly average of the first half. The two datasets measure slightly different things, so the September and October numbers are not directly comparable.

Regulators Raise the Bar

The slowdown has been linked to tighter listing rules. The Information reported in September that the China Securities Regulatory Commission used informal "window guidance" to signal that humanoid robot companies seeking to list must show sustained revenue, a path to smaller losses and real technological innovation, according to Seoul Economic Daily. China's National Development and Reform Commission has also warned about similar products flooding a market with more than 150 robot makers.

Unitree listed on the Shanghai Stock Exchange's STAR Market in August. Its shares climbed to about five times the offer price before falling by half from their peak, Seoul Economic Daily reported.

Capital Concentrates on Leaders

Money is still going to the companies seen as leaders. AgiBot is raising about 1 billion to 1.5 billion yuan and was recently valued at about 50 billion yuan, according to Seoul Economic Daily, and Noetix Robotics has filed confidentially for a Hong Kong listing. Ruiying Zhao, a senior research analyst at S&P Global Market Intelligence, described the shift in investor mood as a move from broad enthusiasm to "selective rationality", the paper said.

For investors in the Gulf and elsewhere who have backed physical AI, the figures suggest that Chinese robotics is moving from a phase where most companies could raise money to one where funding goes to companies with revenue and a clear route to listing.