Commenting on China's venture capital market, SMU Associate Professor of Information Systems Zhu Feida pointed out that China’s huge population base has made it easy for consumer-oriented companies to develop and grow. This has also prompted many start-ups to expand rapidly by copying business models, rather than following the US company's product innovation to expand market share. He noted when the venture capital market began to take shape, many investors were concentrated on a few popular tracks due to lack of experience, which quickly pushed up the valuation of similar companies, but also intensified the false high valuation and homogeneous competition, forming a vicious cycle. He concludes that after a few storms, the investment circle has become more cautious, requiring Chinese start-ups to have unique advantages and sustainable development capabilities, and not just replicating success model of others.