(Source:”Chief Financial Review” official account)
According to Preqin’s latest report, as of December 2019, the total assets of private equity and venture capital focused on the Asia-Pacific region have reached US$1.3 trillion , A record high, PEVC funds are promoting innovation in the Asia-Pacific region. In the past five years, the e-commerce industry in the Asia-Pacific region has become increasingly prosperous. The total transaction value between 2015 and 2019 was as high as 128 billion U.S. dollars, of which the total transaction value in 2018 was 35 billion U.S. dollars. The volume of artificial intelligence transactions supported by venture capital funds in the Asia-Pacific region is basically on the rise. A total of 861 transactions were completed in 2019, a record high. Within the Asia-Pacific region, private equity has poured into ASEAN to support innovative financial technology start-ups. In 2019, financial technology transactions in the ASEAN region accounted for 48%of the total financial technology transactions in the Asia-Pacific region. At the same time, the Asia-Pacific region is moving forward driven by the Internet of Things (IoT) technology. From 2015 to 2019, the compound annual growth rate of IoT venture capital transactions in the Asia-Pacific region was 38%, and the compound annual growth rate of the total transaction value during the same period was as high as 86%.
Compared with the same period last year, fund-raising and trading activities in the Asia-Pacific region in the first half of 2020 have been affected by the epidemic and have significantly reduced. However, the total assets of PEVC in the Asia-Pacific region still hit a record high, and the entire industry continues to help key industries to promote digital transformation, and promote the incubation and growth of various new ideas. At the same time, the distribution of trading activities in the Asia-Pacific region has become increasingly widespread, bringing new opportunities to the market. The Asia-Pacific region is developing rapidly, and investors are eyeing this opportunity. According to incomplete statistics from Zero One Think Tank, there were 72 equity financing events in the global financial technology sector in May 2020, an increase of 10 from the previous month, a year-on-year decrease of 33.3%; the amount of publicly disclosed financing was approximately 12.47 billion yuan, a decrease of 7.4%from the previous month , A year-on-year decrease of 46.2%. The prevention and control of the epidemic has become normal, and the global financial technology investment and financing market has rebounded compared with the previous period, but the amount of financing and the total amount of publicly disclosed financing are still at a low level in the past year. Nearly halfway through 2020, the blockchain field has the highest number of financings, reaching 19, followed by big data and payment fields, with 12 and 11 respectively. Among the total amount of publicly disclosed financing, the big data field is far ahead, reaching 2.31 billion yuan; followed by securities with 2.08 billion yuan. Internet banking, online loans, and IT service financing are relatively small, but the amount of financing exceeds 1 billion yuan, 1.48 billion yuan, 1.52 billion yuan and 1.39 billion yuan respectively.
In the eyes of PEVC investors, opportunities and challenges coexist in the financial technology market. Insurtech, supply chain finance, data protection, and other subdivisions are still relatively competitive. More investment opportunities. According to the report of Ernst & Young’s Global Fintech Adoption Rate Index 2019, China’s Fintech adoption rate is as high as 87%, which is a global leader. The adoption rate of consumer fintech in China and India is both 87%, which is much higher than the global average of 64%; the SME fintech adoption rate in China is 61%, and the corresponding global SME fintech adoption rate is 25%. The report shows that the global average fintech adoption rate has risen to 64%. In just two years, the adoption rate of major markets in the Asia-Pacific region has doubled, and some have even tripled. The extremely high rate of consumer fintech adoption in Mainland China shows that financial platforms and ecosystems have been widely used. Xin Yi, chief partner of EY Asia Pacific Fintech and Innovation, said that mainland China is still a leader in financial service innovation for consumers and small and medium-sized enterprises, and the driving effect of Fintech has penetrated all regions in Asia. Affected by this, traditional financial institutions have begun to build their own financial technology propositions, and regulators have also increased their policy support for non-traditional challenger companies in the fields of banking, insurance and wealth management.
Earlier this year, FindAble released the”2020 Global Fintech Index”. The ranking of global Fintech cities shows that the fast-growing emerging economies Fintech speed Is measurable. Eight of the 20 most important financial centers in the world are not in the ranking of the 20 largest financial technology centers. Almost half of the world’s top 100 financial technology cities are located in emerging markets. This index reveals three hints:First, financial technology is the new engine of future development. The link between a city’s financial wealth and commercial power is no longer implicit but can be counted. At the same time, financial technology is strengthening the ties between countries and regions and reducing its dependence on traditional international financial giants. Secondly, fintech has the potential of four or two. Small cities and remote areas in financial technology centers can or are promoting their importance beyond the world’s leading financial service centers. Third, the ecological environment of financial technology is particularly important. Fintech companies need to operate in a level playing field. For a certain region or city to succeed in Fintech, it needs to adopt flexible policies, activate local talent pools and remove obstacles to help digital companies trade smoothly and freely. .
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