As AI becomes an increasingly important part of China’s economic transformation, economists and industry leaders are raising concerns about two potential risks: inflated valuations for humanoid robotics companies and the technology widening the wealth gap between rich and poor.

Daniel Zhang, managing partner of FirstLight Capital and former chairman and CEO of Alibaba Group Holding, said the sharp fall in some Chinese humanoid robotics stocks reflected expectations that had become excessive.

“Unitree [Robotics] is a great company with a visionary entrepreneur, but no company could withstand such high expectations,” Zhang said at the FutureChina Business Forum in Singapore on Friday.

His remarks came as Unitree, a rapidly growing Chinese humanoid robot maker, saw its shares fall 55 per cent from their peak less than a month after its blockbuster listing on Shanghai’s Nasdaq-style Star Market.