China fintech is over: analyst report

J Capital Research argues China’s P2P lending, payments and fintech players’ e-commerce parents face mass closures in 2016.
Payments are losing profitability in China
Payments are losing profitability in China

And they thought they were just getting started fintech companies in China are going to suffer mass consolidation in 2016 as the state sector takes over what has been a private-sector trend, according to J Capital Research.

In a January 4 report, the Hong Kong-based JCap predicted that falling returns on investments, new regulation and the lack of sustainable business models would force a sharp decline among China’s fintech players. This in turn is a harbinger of tough times for the country’s e-commerce players, including giants Alibaba, Baidu and Tencent.

State-owned banks, on the other hand, will be able to reassert dominance over all aspects...

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