China launches mega $1.44b Asia FinTech M&A Fund of Funds

REUTERS/Petar Kujundzic

Affirming its dominance in the Asian fintech sector, China has launched a mega $1.44 billion Asia FinTech Merger and Acquisition Fund of Funds (Asia FinTech FoF) to focus on investment opportunities in the region.

The fund – led by Hong Kong-listed Credit China FinTech Holdings Ltd along with other China companies Shanghai Xinhua Distribution Group Ltd, China Huarong International and Jilin Province Investment Group Corp Ltd – was launched last Tuesday in Beijing.

“In addition to the aforesaid state-owned enterprises and private enterprises, China Cultural Industry Association, New Times Trust Co Ltd, Shenzhen China Create Group, N-Securities Co Ltd, Beijing Yongyu Investment, Tianjing Borong and Juntong Capital are also partners of the fund,” Credit China FinTech said in a statement issued last Tuesday.

Fintech – the technology-led finance sector solutions that includes online payments, financial software and data analysis – has seen tremendous growth in the past five years attracting investments close to $50 billion globally, according to estimates from Citibank.

Amid this backdrop, while Asia is picking up as it is in early stages in the Fintech sector as compared to other mature markets like US, China has taken a lead to become an international hub like London or Singapore, outperforming many other countries in the region.

According to estimates provided by Credit China FinTech, from July 2015 to June 2016, FinTech related investments in China surged by $8.8 billion, more than doubling from 2010.

“Leveraging on the fund partners’ experiences and competitive advantages in brand recognition, industry resources and expertise, the Fund aims to invest in innovative FinTech enterprises with potential and help them to be the FinTech leaders with our technical know-how and capital resources,” said Credit China FinTech Executive Director Sheng Jia.

According to media reports, the investment will focus on big data, AI, cloud computing, mobile payment, supply chain financing and block chain and the fund already has some projects in the pipeline.

A similar fund, Zhongguancun FOF worth $4.31 billion was launched in October last year in the Zhongguancun area of Beijing.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.