Chinese Firms Launch $1.5b Fintech Fund

A consortium of Chinese state-owned companies and private enterprises has started a $1.44 billion investment fund dedicated to fintech mergers and acquisitions. Fintech fields such as big data, artificial intelligence, mobile payments, supply chain financing, and blockchain technology will be the focus of the fund’s investments.

The size of the Chinese market combined with the lack of developed financial services has created huge opportunities for fintech companies .A recent report released by DBS and consultant EY ranked China as the number one fintech destination, overtaking London, New York and Silicon Valley. According to estimates from Credit China FinTech, China’s investment in fintech ventures grew by $8.8bn between July 2015 and June 2016, more than doubling from 2010.

The consortium is led by Hong Kong-listed Credit China FinTech Holdings and includes other Chinese companies such as Shanghai Xinhua Distribution Group, China Huarong International and eight other corporate partners.

The fund launch also follows the launch of a similar but larger fintech fund in October 2016, the Zhongguancun Fund of Fund, which was worth $4.31bn.