China's Venture Capital Boom Shows Signs of Turning into a Bust

July 08, 2019

TOKYO (BLOOMBERG) - China went through a five-year surge in venture capital investment that fostered a new generation of start-ups from ride-hailing giant Didi Chuxing to TikTok-parent Bytedance Ltd. Now the boom may be over.

Venture deals in China plummeted in the second quarter as investors pulled back amid unpredictable trade talks and growing concerns about start-up valuations. The value of investments in the country tumbled 77 per cent to US$9.4 billion (S$12.78 billion) in the second quarter from a year earlier, while the number of deals roughly halved to 692, according to the market research firm Preqin.

Click here to read more.