‘Fintech’ buzzword draws buyers as 10b yuan fund-of-funds launched
Traditional financial institutions seek exposure to the emerging sector in hopes of synergy with existing businesses
“Fintech” has become such a buzzword in China that money keeps flowing in to assets carrying the name; the latest example is a 10 billion yuan (HK$11.15 billion) fund of funds (FOF) dedicated to this emerging sector.
Led by Hong Kong-listed fintech firm Credit China FinTech Holdings, Asia Fintech FOF was launched on Tuesday. The 11 other partners include mainly central state-owned enterprises, provincial investment funds, trust and securities firms and private equity firms.
“China’s fintech sector was started later than the West’s but is expanding at an unparalleled pace compared with the West. It takes seconds to withdraw cash or transfer for online accounts in China, but in the West it may take a day,” Credit China Executive Director Sheng Jia said at the opening ceremony.
A DBS and EY report The Rise of Fintech in China said Asia as a whole in the first seven months of this year drew in US$ 9.6 billion of investment, compared with US$ 4.6 billion in North America and US$1.8 billion in Europe.
Before the Asia Fintech FOF was launched a Zhongguancun industry merger & acquisitions FOF of 30 billion yuan was the largest such fund so far. It was launched in Beijing in October and partly devoted to fintech.
Partners of the Asia Fintech FOF include Huarong Financial Holding, the Hong Kong subsidiary of a China State asset management company, Xinhua Distribution Group, Jilin Province Investment Group and Guangxi Investment Group.