remain 新年看中国FinTech——过去、现在和未来前景(3)

The insurance sector has seen a similar rise. Riding on the boom in consumer insurance products, Zhongan, a purely online insurance provider, was recently listed on the Hong Kong Stock Exchange, making it the largest FinTech player in the insurance sector.

From a macro perspective, China boasts a world-class FinTech ecosystem. A recent study by the Academy of Internet Finance, Zhejiang University, shows that the Pearl River Delta region (with Shenzhen as its core), the Yangtze River Delta region (with Hangzhou and Shanghai as the core) and Beijing have emerged as three world-class FinTech hubs.

Global Leader by Accident or Design?

Though there is much celebration and consensus about China’s position as a global leader in FinTech, there are different theories about why China is on top.

One school of thought is that the FinTech companies in China exploited loopholes in the Chinese market, which has struggled with less than sophisticated regulations. The one powerful argument in support of this theory is that money market fund Yuebao and bank deposits are subject to different regulations. For example, Yuebao is not subject to deposit reserves. Not surprisingly, this argument has a big following in the banking industry. However, the counter argument from the FinTech world is that the money market fund as a product had been around for a while, and anybody could have taken advantage of the perceived loopholes. Therefore FinTech’s innovative and powerful distribution channels made the difference.