Chinese companies comprise the lion’s share of the overall fintech investments in the world, despite continuing tensions between China and the U.S. over commerce and technology, a new report by the consulting firm Accenture revealed.
Of the $55.3 billion total global investment in financial technology firms in 2018, nearly half of them ($25.5 billion) were made by Chinese companies, according to the report.
Also, the total number of transactions worldwide rose by 19% to 3,251 last year, according to the report. In China, the number of fintech investments ballooned to 348 transactions in 2018, more than doubling the 154 deals in 2017, according to Accenture’s analysis of data released by CB Insights.
The growth in Chinese fintech investments remains solid even as U.S. authorities have stepped up their investigations on investments and mergers made by foreign entities and blocked some China-backed deals.
Ant Financial Services, the operator of Alipay and a subsidiary of Alibaba Group Holdings, had made the largest fintech investment in 2018 with $14 billion worth of funds raised. This activity took place months after American officials blocked a $1.2 billion deal to buy Moneygram International, on the grounds of national security.
Despite the current uncertainty in global markets and macroeconomic concerns, investment in the sector remains strong, Richard Lumb, Accenture’s group chief executive for financial services commented.
Singapore also enjoyed a surge in fintech investments, which more than doubled to $365 million in 2018 from $180 million in 2017. This development has placed the country fifth in the top fintech markets that raised the most significant funds last year in the Asia Pacific region behind China, India, Australia, and Japan, according to Accenture.