Chinese consortium launches $1.5bn FinTech M&A fund

A Chinese consortium of state-owned and private enterprises is launching a $1.44bn fintech investment fund dedicate to mergers and acquisitions in the space.

Named the Asia FinTech Merger and Acquisition Fund of Funds, it will be led by Hong Kong-listed fintech SME service provider Credit China FinTech Holdings.

The ¥10bn ($1.44m) fund also comes from China Huarong International, Shanghai Xinhua Publishing Group and Jilin Province Investment Group.

The consortium says it will focus on mergers and acquisitions in the space with the aim of nurturing leading enterprises in the industry.

It will target big data, artificial intelligence, mobile payments, supply chain financing and blockchain technology among potential areas for investment.

Credit China FinTech executive director Sheng Jia said: “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.”

The new fund of fund’s launch follows a highly-active couple of years for fintech investment in the region.

Credit China FinTech claims July 2015 to June 2016 saw fintech-related investments in China grow by $8.8bn, up 252% from 2010.

The fund’s investors also include the China Cultural Industry Association, New Times Trust, Shenzhen China Create Group, N-Securities, Beijing Yongyu Investment, Tianjing Borong and Juntong Capital.

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