China's top Internet dealmaker warns of 'lawless' markets

Hong Kong

CHINA's most prolific Internet dealmaker has issued a stern warning about the dangers facing investors in "lawless" venture capital and startup markets, urging regulators to step in and curb irrational investment and asset bubbles.

Individual investors lured by promises of extravagant returns are flooding into the high-risk realm of venture capital, Fan Bao, head of China Renaissance Partners, wrote in a column. They're disrupting markets by inflating values and could get burned when the bubble bursts, he wrote in the influential business magazine Caixin.