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Landscape of the Fast Growing and Digital-Enabled Companies in China with LingFeng Capital Partners

It is no secret that China has a booming Fintech sector, producing numerous unicorns (valued at $1B+) in the last few years. So much so, that it has drawn immense global interest from players looking to model their strategies on this market.

Ning Ma, Founder & Partner of LingFeng Capital shared his insights on the landscape of China's fastest growing companies from his first-hand experience with the market.

Below are key insights generated:

  1. As China transforms into a consumption-led economy, consumption upgrade and consumer finance are 2 huge investable sectors in the next 5-10 years
  2. China consumer finance/fintech sectors have robust growth/high profitability, driven by:
    1. Extreme under-supply and under-penetration, leading to high profitability
    2. Fast growth of e-commerce and smart-phone usage & new finance business model based on big data
    3. Millenials increasingly adapting to borrowing , insurance products, and non-cash payments
    4. Overall improving industry infrastructure (i.e. consumer credit bureau and related regulations)
  3. China new finance players are competitive globally and will emerge as a big asset class in USA / Hong Kong / China Capital markets in the next few years
  4. Fintech companies effectively help FI's to improve financial inclusion imperatives as well as their operational efficiencies, etc.
  5. Fintech adoption in China is higher than the rest of the world, with a current 69% of digitally active consumers in China using Fintech services, well above the global average of 33%
  6. Capital markets continue to aggressively pursue the Fintech industry in China. In 2016 alone, investment in mainland Chinese and Hong Kong fintech ventures totaled $10.2B, surpassing North America's $9.2B and Europe's $2.4B

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