China and Hong Kong stock markets ended the week under pressure as investors reduced risk ahead of Unitree Robotics’ highly anticipated listing on the Shanghai Stock Exchange’s STAR Market. Lower liquidity, weakness in property stocks and caution surrounding corporate earnings contributed to the decline. 
The blue-chip CSI300 Index slipped 0.1% by the lunch break, while the Shanghai Composite Index fell 0.2%. In Hong Kong, the Hang Seng Index declined 0.9%. 
Market analysts said investors were remaining cautious ahead of interim earnings announcements, while funds committed to Unitree’s IPO were also contributing to tighter liquidity in the wider market. 
Unitree’s offering has attracted unusually strong investor interest. The humanoid robot maker is issuing around 40.45 million shares, representing 10% of its enlarged share capital. The company has priced the offering at RMB 150.80 per share, putting the deal at roughly RMB 6.1 billion, or about USD 900 million. Its retail portion was heavily oversubscribed, highlighting the strong appetite for technology and artificial intelligence-related stocks. 
Unitree’s listing is also being closely watched because it is set to become the first publicly listed humanoid robotics company on China’s A-share market. The company plans to use the IPO proceeds for intelligent robot model development, research into robot bodies, next-generation products and the construction of a manufacturing base. Its 2025 revenue was close to RMB 1.7 billion, while adjusted net profit was about RMB 590 million. 
The property sector was one of the weakest areas in mainland China. The real estate sector led declines in A-shares along with healthcare stocks, while communications and rare-earth shares performed comparatively better. 
The weakness was more visible in Hong Kong, where property major CK Asset fell more than 7%. The decline came after the company reported strong interim earnings but did not declare a special dividend, disappointing investors who had been expecting additional shareholder returns. 
CK Asset remains closely linked to the broader property market through its residential development, property investment and leasing businesses in Hong Kong, mainland China and overseas markets. Its property sales revenue had increased sharply in 2025, although the wider sector continued to face uneven demand and liquidity pressures. 
The reaction also reflects the importance investors are placing on cash distributions as Hong Kong’s property market continues to recover unevenly. Mainland Chinese buyers have shown stronger participation in Hong Kong residential property, with research earlier this year indicating a sharp increase in purchases by mainland buyers. 
The Hang Seng Tech Index dropped 1.8%, with JD.com falling about 10% after the company reported weaker second-quarter revenue. The decline in technology stocks added to the broader pressure in Hong Kong, despite continued investor interest in artificial intelligence, robotics and other technology-related areas in mainland markets. 
The smaller Shenzhen index was down 0.09%, while the ChiNext Composite Index gained 0.65%. Shanghai’s technology-focused STAR50 Index declined 0.57%. 
Investor positioning remained another concern. Analysts pointed to weaker domestic demand in both mainland China and Hong Kong, along with concentrated positioning in certain market segments, as factors that could limit the market’s ability to absorb fresh selling pressure. 
China’s expanding cross-border tax collection measures have also weighed on investor confidence. Market participants said concerns were growing over possible tax measures affecting offshore insurance income and their impact on investment flows between mainland China and Hong Kong. 
Kelly Chung, chief investment officer for multi-assets at Value Partners, said Hong Kong financial stocks had come under pressure following reports that China could impose taxes on offshore insurance income. According to her, the possibility raised concerns about tighter controls on offshore investments by mainland Chinese investors. 
For property and financial stocks, the issue adds another layer of uncertainty at a time when investors are already assessing the pace of the domestic economic recovery and the strength of demand. 
The broader market reaction shows that the current weakness is not being driven by one factor alone. Tight liquidity around a major IPO, cautious positioning before earnings, pressure on property companies and concerns around cross-border investment rules are all influencing trading sentiment. 
Source Reuters