Chinese Fintech Enterprises Raised ¥230 billion (USD $ 2.64 billion) in the First Half of the Year
The integration of technology and finance has become a major trend in the development of the financial industry. The investment enthusiasm of the capital market for financial technology remains undiminished. According to data from 01 Thinktank, in the first half of 2018, there were at least 569 financial technology investment and financing events in the world, involving a total of about ¥276 billion, with a year-on-year increase of 346.3% and a sequential increase of 208.1%. The total amount of financing in China is about ¥230 billion, accounting for 83.3% of the world. Among them, Ant Financial Services, Xiaoman (Baidu Finance) and JD Finance raised about ¥120 billion, accounting for half of the total domestic financing. Among them, the blockchain industry is most favored by investors, and received a total of ¥16.4 billion in financing. In addition, online lending and online wealth management followed closely, with 78 and 43 financings respectively. (Source: Securities Daily)
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Social Trading Platform Xueqiu Announced the Completion of $120 Million of D-round Financing
On July 16, social trading platform Xueqiu announced the completion of the $120 million D-round financing, with Ant Financial as a new strategic investor and China Renaissance as the exclusive financial advisor. Before getting this round of financing, Xueqiu has received three rounds of financing:
- In 2011, Xueqiu won a ¥20 million investment from Sequoia Capital;
- In May 2013, it received a B-round investment of $10 million from Sequoia and Morningside Venture Capital;
- On September 3, 2014, Xueqiu completed $40 million C-round financing. This round of financing was led by the Renren Group, and Morningside Venture Capital.
Xueqiu founder and CEO Fang Sanwen said:
“This round of financing will be mainly used for product development and recruitment of talents in community and trading systems, further improving the investment experience, and providing users stock and fund trading services across markets.”
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PwC: The Overall Market Value of Chinese Technology Companies Will Reach 50 Trillion Yuan in 2025
With the continuous development of information technology, the innovation space of China Mobile Internet on the consumer side (hereinafter collectively referred to as “C-side”) has been shrinking. According to a newly released PwC report New trends of technology enabling To-B services, the business model has evolved from C-side innovation to enterprise-side (hereinafter collectively referred to as “B-side”) innovation. The valuation of technology companies is gradually changing from the traditional traffic-oriented to profit-oriented pattern. Therefore, how technology can better serve the B-side has become the new focus point.
Enterprises that enable the B-side will exert great impact on government policies and supply-side reform. The White Paper predicts that by 2025, the overall market capitalization of Chinese technology companies will reach ¥40-50 trillion. At the same time, the market value of representative enterprises in the T2B2C model will reach more than half of the total market value of future technology companies. (Source: PwC)
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Chinese Fintech Enterprise PINTEC Submits Prospectus in the US
On July 16, EST, Chinese financial technology solution provider PINTEC submitted an initial public offering (IPO) application to the US Securities and Exchange Commission (SEC). The document shows that PINTEC is planning to be listed on the NASDAQ exchange under the ticker symbol “PT” and the underwriters will be Goldman Sachs, Deutsche Bank and Citibank. The prospectus shows that PINTEC has become profitable in the first quarter of this year. The total revenue of PINTEC in 2017 reached ¥568.7 million, with an increase of 936% compared with 2016. The income in the first quarter of 2018 reached ¥279.4 million with a year-on-year increase of 339%. In terms of profitability, PINTECH suffered a loss of ¥84.9 million in 2017 with a decrease of 57.7% from 2016, and a profit of ¥14.6 million in the first quarter of 2018. (Source: 01Caijing)
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