As many industry observers have noted, crowdfunding and other alternative financing methods have been allowed to flourish without government approvals or regulations.
According to sources, on-line Peer-to-Peer lenders in China distributed US$32 billion last year in the form of loans to individuals and SMEs - already three times the rest of the world combined.
Liberum Capital of the UK predicts that China will lend, through these platforms, some US$60 billion vs. US$12 billion in the US.
Now compare that with the investments made in fintech in Asia compared with the rest of the world in 2104. If China was able to lend such large amounts - with relatively small investment in fintech - imagine the effect closing the investment gap will have on the future potential in this country.
It’s a long term project but that’s what the Chinese do best. They are able to think past the next Quarterly result announcement and plan for future generations and long term prosperity.
Legacy investment banks and intermediaries should beware that China is leading the world away from old boy networks and through cutting edge applications in fintech. We're sure the rest of the world won’t be far behind. Find out more about the work Grow Advisors is doing to develop online marketplaces in Asia and around the world.
Thomas Samuelson, Grow Advisors
Tom has spent over 25 years in investment banking and hedge funds. He is an investor in emerging markets and has worked and traveled extensively throughout Asia, specifically China. Use this link to contact Tom.
Grow Advisors offers consulting and professional services on crowdfunding, crowd investing and p2p finance globally. Our advisors develop platforms that connect startup ecosystems, set up marketplaces and co-investment models, structured investment instruments, and find innovative ways to create finance solutions globally.