Chinese crackdown slows Asian fintech funding: report

Investments in Asian fintech companies fell below US$1 billion per quarter for the first time in over a year as China tightened regulations on online lenders, according to market intelligence firm CB Insights.

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Funding for fintech companies fell 67% to US$875 million in Q1 2019 compared with the last quarter, despite more companies finding investors, the report showed.

Chinese regulators cracked down on online lenders after the industry witnessed a string of frauds and bankruptcies. In February, Chinese police have investigated 380 online lenders and frozen US$1.5 billion in assets as part of their regulatory efforts.

According to the CB Insights report, investors poured US$286 million into Indian fintech companies across 29 deals in Q1 2019, narrowly beating China as the top Asian fintech market. Chinese fintech companies raised US$192.1 million in funding across 29 deals over the period, down from US$1.83 billion last quarter.

The US remained the top fintech market with 170 deals and US$3.3 billion raised. Europe, which beat Asia as the second top fintech market, saw 102 companies taking in US$1.7 billion.