China Launches $1.44 Billion FinTech Blockchain Fund
As dubbed by a collaborative report by DBS and EY in November 2016, China is thriving in terms of blockchain and FinTech development.
“While London, New York and Silicon Valley, compete to position themselves as the world’s ‘FinTech hub’, China has leapfrogged ahead to become the undoubted centre of global FinTech innovation and adoption – thanks to developments across multiple hubs, such as Shanghai, Hangzhou, Beijing, and Shenzhen.” – The Rise of FinTech in China: Redefining Financial Services
2016 was certainly the year of the blockchain-FinTech boom and so far 2017 is seeing, even more, growth. The Asian FinTech sector is growing exponentially, with China recently launching its own consortium fund of $1.44 billion USD ($10 billion RMB).
The fund is being led by Credit China FinTech Holdings with China Huarong International, Shanghai Xinhua Publishing Group, and Jilin Province Investment Group. The funds will focus on FinTech developments such as big data, artificial intelligence, mobile payments, supply chain financing, and blockchain technology.
A press conference announcing this merger was held December 27, 2016, in Beijing. Yang Zaiping, Deputy Chief of the First Preparatory Group of Asia Banking Association and former Deputy Head of China Banking Association, delivered the opening speech at the press conference.
Sheng Jia, Executive Director of Credit China FinTech, introduced the merger fund:
"Leveraging on the fund partners' experiences and competitive advantages in brand recognition, industry resources and expertise, the Fund aims to invest in innovative FinTech enterprises with potential and help them to be the FinTech leaders with our technical know-how and capital resources.”
As stated in the press release by PR ASIA Consultants Limited, on behalf of Credit China FinTech Holdings Limited:
“China has become the international hub of FinTech. China has outperformed other Asia markets in the FinTech industry in terms of its development pace, complexity and scale, which makes China the market leader in this area. From July 2015 to June 2016, FinTech related investments in China surged by US 8.8 billion, up 252% from 2010. The growth of China's FinTech investment topped the global market. Comparing to mature markets such as the United States, Asia's Fintech market is still in infancy stage and suggests a higher return on investment.”
After seeing more growth of Chinese consortia and Shanghai hosting the major Ethereum event, Devcon2, last year, China is clearly striving to be the top performer in the blockchain space.