On May 29, UBTECH fell 3.19% in regular trading, trading at HK$105.7/share, with trading volume of HK$345 million. The decline was driven by continued market concerns over equity dilution following the companys announced discounted share placement, compounded by residual selling pressure from its joint venture announcement.

On the news front, UBTECH recently disclosed plans to place approximately 31.47 million H shares at a discount exceeding 11%, targeting net proceeds of approximately HK$3.056 billion. The substantial discount triggered investor anxiety over shareholding dilution. Simultaneously, the company announced the formation of a joint venture with Muxi Integrated Circuit and Fenglong Shares to develop embodied intelligence edge-side chips, with registered capital of RMB 100 million and UBTECH holding a 35.01% stake. Investors remain divided on the near-term capital commitment and return expectations of this investment.

Additionally, momentum from a prior large block sale of 57,900 shares at HK$116.6 continued to weigh on sentiment. The broader Industrial Machinery sector also showed weakness, with HANS CNC down 4.11% and Sanhua down 2.43%.

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