Advertisment

China is on track to beat its 2016 FinTech capital venture $10 billion funding record as Chinese companies continue to set the pace and raise funds to expand their digital services.

In a report from Bloomberg, Accenture Plc said that the investment areas focused on will most likely include artificial intelligence, big data, blockchain, and cybersecurity. According to Albert Chan, managing director of China financial services at Accenture, more money is expected to go into investment services, online lending, and robo advisors.

Over the last two years there has been significant growth in the Chinese market with 2016 surpassing its record in 2015. Accenture analysis found that in 2015 the country raised $2.97 billion in blockbuster deals.

Last year’s $10 billion figure was partly bolstered by $4.5 billion fund that was raised by Alibaba Group Holding Ltd., which was the biggest FinTech venture capital round in history.

FinTech Increase in Asia

In a report from CBInsights, Asia accounted for around 20 percent in the number of FinTech investments worldwide last year. However, deals accounted for a far more with 43 percent of the global funding taking place in Asia in 2016.

It’s believed this is down to the fact that major Chinese companies are pouring money into the Asian financial technology sector than ever before.

Some of China’s heavyweights that have contributed to the sector include Shenzhen-based Ping An Insurance Group, China’s largest non-state-owned financial entity with assets of over $765 billion. In early 2016, it raised $1.2 billion through a Series B round of online lender Lufax. The Ping An Group also became the first Chinese member to join the R3 Consortium last year.

E-commerce JD.com raised $1 billion in January 2016 in another funding round helping to contribute to the world’s biggest investment funding rounds in financial technology startups in 2016.

Toward the end of 2016, multimillion-dollar Chinese investment firm Huiyin Group announced the launch of a $20 million bitcoin and blockchain fund, which aims to invest in bitcoin and blockchain companies.

China’s Growth Set to Continue

More recently, Credit China Fintech Holdings, a Hong-Kong-based firm entered a $30 million agreement and investment in industry giant BitFury. New agreements are expected to take place in China throughout 2017 as it sets its sights on beating the investments it made in 2016.

Chan added that venture capital funding is likely to continue into 2017 for the Chinese market.

He said:

This year we are likely to see continued significant investment into fintech in China both from new market entrants and traditional financial institutions.

Featured image from Shutterstock.

Get the latest Bitcoin News on The Bitcoin News
Our Social Networks:
Facebook Instagram Pinterest Reddit Telegram Twitter Youtube