Sheng Jia: “The Belt and Road” provides an opportunity for FinTech enterprises


  [News from dated May 15 in Beijing (Yu Yanming)] Yesterday, the Belt and Road Forum for International Cooperation was opened in Beijing, and President Xi Jinping delivered a keynote speech entitled Work Together to Build the Silk Road Economic Belt and The 21st Century Maritime Silk Road..

  Sheng Jia, CEO of NCF Group, indicated during the live broadcast of The Belt and Road Forum for International Cooperation on that President Xi Jinping’s speech was exciting and mentioned financial topics, which served as excellent topics and opportunities for many FinTech enterprises.

  “As far as the global FinTech sector is concerned, China is actually at a leading position.” Remarked Sheng Jia. In spite of China’s late start in FinTech, it is at a leading position in terms of product innovation and business scale, which is advantageous for Chinese enterprises’ going global.

  In Sheng Jia’s opinion, Chinese FinTech enterprises endeavoring to go global should take approaches at least from three aspects: financing, product technology and talent exchanges.

  In terms of capital, Chinese FinTech enterprises should directly carry out investment and financing business overseas by means of finance, fund, etc. For instance, Credit China FinTech Holdings Limited, a listed company affiliated to NCF Group, initiated “Asia FinTech Merge and Acquisition Fund of Funds” of a RMB ten billion scale at the end of 2016 jointly with several domestic heavyweight investment companies, so as to directly discover and cultivate potential FinTech enterprises in Asian countries.

  In terms of product and technology, China features relatively mature payment, monetary settlement and consumer finance sectors. Domestic FinTech enterprises should directly export these business, products and technologies to Southeast Asian countries.

  NCF Group acquired a leading local FinTech company in Vietnam so as to carry out payment business. “China’s experience in the payment sector can thus be introduced to Vietnam. In spite of the large population in Vietnam, its FinTech development stage falls three to four years behind China. In this way, China can help Vietnam develop faster.”

  In terms of talents, it is of particular importance to strengthen exchanges with foreign talents, orienting towards not only Southeast Asian countries but also European Countries and the United States. For one thing, we can pool talents and technologies from these countries; for another, we can output characteristic research achievements.

  In terms of talent cooperative exchanges, innovation and entrepreneurship, each country tends to adopt different strategies. In spite of the huge local market in Southeast Asian countries, advanced payment and virtual currency technologies are lacking. Sheng Jia said: “If there are such local talents, we can directly cooperate with enterprises so as to quickly apply advanced technologies to local markets.”

  On the other hand, it is vital to strengthen cooperations with developed countries such as Britain and the United States, whose technological levels are very high and AI and big data sectors are highly advanced. Hence, we should try to introduce such talents for cooperation in terms of entrepreneurship and innovation.

  Chinese FinTech enterprises will be exposed to risks when going global and hence should pay enough attention to risk control and addressing. “In the financial sector particularly, regulatory environments in global financial markets vary while corporate types and development stages are different as well. Therefore, it is a must to have in-depth understanding of local financial supervision and financial environment before making direct investment, while endeavoring to find premium local partners.” Said Sheng Jia.

  Sheng Jia introduced that the Fund of Funds initiated by NCF Group attached great importance to team localization in the operation process. Currently, Credit China FinTech Holdings Limited, a listed company affiliated to NCF Group, has established Southeast Asia Regional Headquarters in Singapore, which specializes in investment and M&A in Southeast Asian countries and regions. For each investment project, the priority lies in seeking excellent local partners.

  “The Belt and Road Forum for International Cooperation emphasized international cooperations, reflecting that international cooperations should be a primary starting point for Chinese enterprises aspiring to go global. If Chinese enterprises fight alone in international markets, many issues such as efficiency, are unlikely to meet our expectations.” Commented Sheng Jia. With good partners in place, FinTech enterprises can basically address risk control, understanding of local supervision laws, market exploration, etc.