China's leading manufacturer of humanoid robots, Unitree, saw its stock surge by 460% on its first day of trading on August 19 on the Star Market, a tech-focused segment of the Shanghai Stock Exchange. However, the stock quickly plummeted the following day. According to the South China Morning Post, within a month, Unitree's shares lost 44% of their value, wiping over 200 billion yuan (25.8 billion euros) off its market capitalization. This dramatic decline has reignited discussions about the appropriateness of the criteria used for initial public offerings (IPOs), especially for companies in sectors deemed "strategic" by Beijing. The newspaper notes that the growth of revenue, profit outlooks, and innovation capabilities of companies seeking to go public are now central to a stricter regulatory review. Despite this sharp decline, Unitree's market capitalization remains at 190 billion yuan (24.5 billion euros), which is 347 times its estimated earnings—far above the average for companies listed on the Star Market. However, Kelvin Lau, an analyst from Daiwa Securities, argues that the company's financial results do not justify such a high valuation. The situation highlights the challenges of valuing high-tech firms, particularly those in emerging sectors like robotics, where future potential often outweighs current profitability. The Chinese government has been pushing for stronger oversight of IPOs to prevent overvaluation and ensure that only companies with solid fundamentals gain access to capital markets.