A new report from KPMG points to over USD$960 million of investment in Chinese fintech companies in the second half of 2019.
KPMG’s Pulse of Fintech H2’19 report indicates that China’s fintech sector saw USD$962.2 million in investment in the second half of last year, via venture capital, private equity and mergers and acquisitions.
According to a recent report from Accenture China’s fintech investments totalled USD$1.9 billion in 2019, for an 83% YoY drop compared to the figure of $25.5 billion for 2018.
KPMG nonetheless sees China’s fintech sector enjoying robust growth in future given strong support from Beijing, with the release of a three year 2019 – 2021 fintech development plan by the Chinese central bank last year.
“China’s central bank and other authority bodies are working to move fintech in the country to ‘2nd half’ as part of their three-year fintech development plan,” said Chris Wang, Partner, Head of Fintech, KPMG China.
“We anticipate an increased regulation and guidance for the industry and an enhanced infrastructure to support fintech development.
“For example, sandbox mechanism is being designed and may soon roll out to test the concept of different fintech to make sure they comply with regulations and will achieve the desired results before they enter the market.”