Investment in China’s fintech sector has seen a precipitous drop since the start of 2019 according to a new report.
The Global Fintech Report Q1 2019 released by CB Insights indicates that Chinese fintech investment fell by 89% in the first quarter to just USD$192 million, putting it behind India.
Liu Genping, partner at Vertex Ventures, said to Financial Times that collection of “most of the low-hanging fruit” is one of the main reasons for the drop in Chinese fintech funding, alongside a crackdown on the sector by regulators.
The Asian fintech sector as a whole took a hit in the first quarter, with investment falling beneath the $1 billion threshold to $875.7 million.
In sharp contrast European fintech funding rose to record levels, more than doubling in the first quarter compared to the final quarter of 2018 with an increase from $803.7 million to $1.7 billion.