China’s internet finance startups could have hardly anything to complain in the first half of the year as private investors pour billions of dollars into the industry. In reality, however, the industry’s prospects may not be as bright as it seems.
Data from China Academy of Information and Communications shows total investment in Chinese fintech companies fell sharply to $1.5 billion in the third quarter from $16.2 billion in the second quarter.
In Q3 this year, only three Chinese companies managed to collect over $100 million in their fundraising, down from six companies in the previous quarter.
Investors are no longer rushing to invest...