China’s Robotics Index Plummets Amid Bubble Warnings
The Solactive China Humanoid Robotics Index has tumbled nearly 20% after a meteoric 60% year-to-date rally, fueled by viral clips of robots kickboxing and racing on social media platforms like TikTok and Twitter. The decline comes as Chinese authorities caution against a burgeoning bubble in the robotics sector.
More than 150 companies are now producing nearly identical robots, raising concerns that this flood of sameness could stifle genuine innovation. UBTech Robotics, whose stock more than doubled this year despite posting a ¥414 million ($58.5 million) loss in H1, epitomizes the sector's speculative fervor.
Morgan Stanley analysts poured cold water on the hype, noting weak industrial use cases and efficiency levels that still lag far behind human workers. Their 2026 sales forecast of 12,000 units stands in stark contrast to optimistic projections of 100,000.
The central government has launched an 'anti-involution' campaign to curb copycat competition, as local authorities continue pushing low-quality robotics projects. The frenzy began after Unitree Technology's robots went viral during China's Spring Festival Gala, catapulting humanoid robots into the national five-year plan.
