A tighter regulatory climate in China is casting a cloud over robotics startup Galaxea AI’s plan to go public in Hong Kong, people familiar with the matter say. The company, which develops advanced humanoid robots for manufacturing and logistics, has reportedly paused its initial public offering amid heightened scrutiny of emerging tech firms. This delay reflects broader challenges facing Chinese startups seeking international listings as authorities enforce stricter data and security reviews.

Industry analysts suggest the pause could impact investor confidence in the sector, particularly for companies blending AI with physical automation. Galaxea AI’s situation underscores the volatility of tech IPOs in the current geopolitical climate.