The post-listing selloff in the company, one of the world's largest producers of quadruped and humanoid robots, has also led to soul-searching over China's listing mechanism, which some analysts say distorts prices.

China’s robot boom hits a frenzy as Unitree’s IPO jumps to a $50 billion valuation, raising questions about revenue, risk and how fast the humanoid market can mature.

Shares of Unitree Robotics, known as “the first humanoid robot stock” in China, continued their decline on Monday. By the close of trading, the drop had narrowed to 10.31 percent,…