Chinese regulators are tightening the approval for humanoid startups seeking to go public after a volatile debut by industry leader Unitree Robotics, as they aim to cool down a sizzling sector rife with copycats but little real technological breakthroughs.

The Chinese Securities Regulatory Commission recently gave its informal “window guidance” to some investment banks and investment firms that it is raising the bar for granting approval of humanoid IPOs, according to people with knowledge of the matter. Companies must demonstrate they can generate recurring revenue, are on a path to narrow their losses or achieve real innovation before approvals can be considered, the people added.

AI startup Manus said on Tuesday that it will “soon return to operating as an independent company,” implying it is close to finalizing the reversal of its acquisition by Meta Platforms. The Chinese government in April ordered the deal be unwound.

In a blog post, Manus said users need to back up ...