Baby panda rescue

14 December 2018 By Alec Macfarlane

Regulatory tightening and skittish investors mean many tech seedlings will struggle to raise funds in 2019. With Tencent less active, it’s a buyer’s market for the likes of Alibaba, SoftBank and Xiaomi. Enterprise tech, AI and electric cars will make for vulnerable targets.

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China’s largest listed technology stocks had lost almost half a trillion dollars in value from the start of the year to mid-November amid a broader economic slowdown, a series of tit-for-tat trade tariffs imposed by the United States and tighter regulation of social media, gaming and fintech sectors, Reuters reported Nov. 13.

“Investments into the tech space have definitely cooled down,” Zhang Chenhao, Shanghai-based Managing Partner at technology-focused Prometheus Fund, told Reuters. “I think this year is the first time over the last 30 years when greed yields to the fear.”

Smaller startups are also suffering as access to capital becomes tougher, the report added.

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