Fintech investments in Chinese startups reached $1.3 billion during the first half of 2021, according to Pulse of Fintech, a bi-annual report by KPMG on fintech investment trends. China fintech firms attracted $900 million in investments during the same period last year.
In this context, Andrew Huang, Partner and Fintech Leader, KPMG China said, “China’s fintech market is incredibly mature next to many other jurisdictions, with investments in areas like payments really taking off a few years ago and a number of clear leaders emerging. Now what we’re seeing isn’t megadeals in those very mature areas, but rather an increasing number of smaller deals focused on less mature sectors of fintech — like B2B services, wealthtech, and insurtech.”
Earlier this year, China substantially fined some of the big names in the industry. Authorities summoned 13 fintech firms and ordered them to strengthen compliance with regulations.
Some of the big names include multinational technology conglomerate holding company Tencent and Beijing-based tech company ByteDance. Fintech arm of e-commerce giant JD.com, handset maker Xiaomi, ride-hailing app Didi Chuxing and food delivery firm Meituan were among those to face the regulators.
The crackdown was a part of the ongoing antitrust clampdown backed by President Xi Jinping.
The People’s Bank of China said in a statement, “Internet platforms have played an important role in improving the efficiency of financial services and broadening the access of financial services to more people.”