Earlier china was considered as an emerging nation in financial service sector. However, due to the rapid growth and development in their financial sector, the Chinese economy has got a great impetus. The Chinese service industry has become the top choice for all the foreign investments. According to statistics, China rules the world’s fintech market.
Initially Chinese markets were close to all foreign investments and trade. However due to advancements in technology, the Chinese markets have opened to the rest of the world. With more advancements and innovation in in the industrial sector, Chinese service industry will become integrated and digitalised. Credits to the Chinese industry which has brought a boost in employment. China has one of the largest ecommerce ecosystem with the internet provider mainly focused on huge volumes of transnational and user data. China has a massive $7 trillion retail which is invest able at a very low interest rate. Chinese people are open to new technology and innovation. They have adopted various Fintech solutions like online banking, digital currencies etc.
China’s technological dominance is mainly because of its giants like Alibaba, Tencent and Baidu. A huge portion of technology which consists of ecommerce, search platforms and communication is controlled by these giants. The boundaries that used to exist between the producer and the industry has faded and new advancements in information technology has led to a high development of the industry. China has largest middle-income population in the world. The nation is expected to deploy new manifestations of business-like digital economy, platform economy and shared economy. This is going to be an impetus to the employment sector in the country. The Chinese financial sector has improved its regulatory standards which have reduced the costs and has generated a high return on investment.
China has already become a center for outbreak of new innovations. China’s powerful blend of quick urbanization, administrative passive consent, an enormous SME market, escalating web-based business development, and blast in online and mobile penetrations, have made a prolific ground for advancement in trade, banking and financial administrations more comprehensively. Recently created mobile driven money solutions giving access to common assets through stock exchanging applications offer offline to-online movement, with online dealers representing over 92% of new customers.
Key players are Ant Financial (Alibaba), Li Cai Tong (Tencent), Baifa (Baidu), Wacai, Tongbanjie, Zhiwanglicai (CreditEase) and JD Finance (JD.com).
Thus, a country which had an ‘emerging’ tag few years ago has become one of the largest and strongest economies in the world attracting foreign investments, providing new opportunities for people and making huge leaps in development of technology.