Pop! Goes the China tech bubble after key funding sources dry up

Offshore private equity funds struggled to compete with a wave of onshore money. Now it's retreating, and the water looks more inviting

Last year, the wave of mainland money piling into Chinese technology companies pushed valuations into bubble territory. That made life difficult for foreign private equity firms that have to make new investments to survive — but there’s a glimmer of light at the end of this investing tunnel. Fundraising from rich Chinese entrepreneurs and shadow banks is drying up, so there could be less cash competing for returns in future.

More than a third of private equity money newly invested in the Asia-Pacific region last year was in China tech and internet plays, according to Bain & Co. With so much