Different from the previous research focus on the formation mechanism of overcapacity from a macro perspective, we investigate how fintech can contribute to the resolution of overcapacity and its internal logic from the perspective of market information advantage. It is found that fintech can significantly improve the capacity utilization rate of enterprises, that is, alleviate the overcapacity of enterprises. This result is robust after some endogeneity and robustness tests. We further identify the economic mechanism through which fintech development alleviates the overcapacity. It is shown that fintech can enhance the information gathering ability of banks and other financial institutions, enabling them to better identify overcapacity enterprises, actively reduce the amount of bank loans to overcapacity enterprises, and increase the price of loans to overcapacity enterprises, thereby improving the investment efficiency of enterprises and increase the utilization rate of their production capacity. Moreover, we also found that the effect of fintech on capacity utilization is more pronounced for firms with high customer volatility, high dispersion of investment information, and in regions with low levels of marketization. Our paper provides new insights into the specific mechanism of fintechs contribution to the resolution of overcapacity from the perspective of market information, which has important implication for overcoming the dilemma of overcapacity and achieving high quality development in the new development stage.