China’s massive fintech industry took a beating in recent months as the government continued to wind down online lending nationwide, rattling investor confidence.
Funding for fintech startups shrank 87.6 percent year-over-year to $192.1 million during the first quarter of 2019, a new report from data provider CB Insights shows. India, which recorded $285.6 million raised for fintech startups in the period, overtook China to be Asia’s top fundraising hub for financial technology. Both countries clocked in 29 fintech deals, suggesting a cooling investor sentiment in China which saw its height of 76 deals just three quarters ago.
The plunge in China has followed on the heels of tightened regulation around online lending, suggests CB Insights . Over the past few years, China has rolled out a flurry of measures to rein in financial risks arising from its fledgling online lending industry. Peer-to-peer lending, which matches an individual … Read the rest