Robo-advisors in China improved rapidly at beginning due to low market access standards and limited financial regulations. Since 2016, regulators worked out with various measures to promote the industry. However, statistics proved robo-advisory industry in China turned out to be less prosperous after that. Though it may result from complex reasons, one of which turns out to be a side effect of financial supervision. The research figures out risks for robo-advisors to breach compliance requirements and the dilemmas they are facing. Chinese regulators apply a financial inclusive strategy and penetrative supervision, but it impedes innovation to some extents. Judicialization of supervision is another problem. To solve this deadlock, making products more abundant may be the first step, and further legal steps should be adopted, such as advocating technology-driven regulatory innovation, making clear fiduciary duties, facilitating accurate supervision and risks prediction, and establishing a comprehensive regulatory structure.