In 2016, FinTech investments in China grew significantly despite markets in other nations experiencing a decline in the sector. According to a report
In 2016, FinTech investments in China grew significantly despite markets in other nations experiencing a decline in the sector. According to a report released by the China Money Network, FinTech investments in China had doubled within the first nine months of last year. This development has been attributed to rounds of funding by JD Finance, Chinas Lufax and Ant Financial.
The report from China Money Network further states that during the first three-quarters of the previous year, investments from the global technology accounted for US$18 billion, a slight decline from the US$19 billion invested in 2015. China accounted for 50% of FinTech global investments in 2016 according to the report released by City Asia Pacific. However, the global financial technology investments declined in Europe and the US to 27% and 38% respectively.
Is China leading the way?
From the report released by China in October last year, China could easily surpass London as the leading FinTech global investment spot. H2 ventures and KPMG have noted that were 8 Chinese firms in 2016 that featured in the list of top 100 global firms listed with FinTech. Again, four of these 8 Chinese firms featured in the top 5 global firms listed with Fin Tech. These firms are Quadian, Lufax, Ant Financial and ZhongAn. Only 1 UK firm, Atom Bank, made it to the top 10.
As it continues to invest in the global financial technology, China is definitely a country to watch. Currently, the largest financial technology private firms by total value are those situated within the Chinese nation rather than those situated in the US. According to China Money Network, the largest two financial technology firms are Ant Financial and Lu.com, with a total value of US$60 billion and US$18 billion respectively.
The future of FinTech investment in China
In a move geared at further pushing FinTech’s agenda in China, Credit China Fintech Holdings Limited announced late last month that it was entering into a $30 million deal with BitFury, the blockchain and bitcoin giant. According to the Hong Kong-based investment firm, the deal seeks to ensure there is an investment in BitFury shares as well as a joint-venture effort that is fully focussed on the Chinese market. In addition, the PBOC (Peoples Bank of China) last month concluded a trial run of the digital currency that is based on the blockchain technology. At the same time, the nation announced at the fall of 2016 that its recent 5-year plan will provide support for the development of blockchain.
Definitely, China reported to have surpassed the likes of New York, London, Silicon Valley, Hong Kong, Singapore and other prominent FinTech Hubs by a wide margin. Now, will FinTech Chinese investments double again in 2017 just like the previous year?