Hello friends,

Welcome to our latest Chinese Fintech newsletter.

In this issue, we'll cover exciting new product launches and funding news from Chinese fintechs in August. 

Let's get started!

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Please email me at ning@thisweekinfintech.com to discuss more.

Venture Financing & Acquisition 

• Paytm CEO Vijay Shekhar Sharma acquired 10.3% Stake worth $628 million, becoming largest shareholder in the company ge Founded, in buyout from Ant Financial's subsidiary. Ant Group therefore reduced its stake in Paytm to 13.5% from 23.8%. 
• Airwallex Singapore received $165 million capital injection from its parent company to support continued growth in this region. 
• Hong Kong microfinance platform Micro Connect raised $458 millions from investors.
• China's decision to limit mainland listings, aimed at boosting the secondary market, is expected to impact the fundraising plans of numerous companies and have an economic impact. 
• Greater China-based startups raised under $11 billion in the second quarter, down 25.3% from almost $14.7 billion in Q1 2023, according to DealStreetAsia.

Licensing & Regulations

• U.S. lawmakers are investigating BlackRock and MSCI for allegedly supporting China's military ambitions through their investments, raising concerns about links to blacklisted companies and human rights violations.
• Shenzhen Shikongyun Technology, A major Chinese Filecoin miner, is facing allegations of orchestrating an $83.2 million pyramid scheme.
• Payoneer Singapore has been granted a payment license from the Monetary Authority of Singapore (MAS).

Product & Partnership Launches 

• Ant Group launches overseas blockchain brand,  ZAN.
• Alipay released an updated international version of its app, improving payment solutions offered to foreign visitors.   
• Airwallex partners with Public to reduce fx costs for UK investors purchasing US-based equities.
• WeChat Pay and Network International Payments in the UAE have teamed up to enable POS terminal payments for Chinese tourists.

Other News 

• China has lifted group travel ban to more than 70 locations. 
• Singapore Exchange (SGX) plans to list structured certificates this month, becoming the first Asian exchange to offer these third-party issued financial instruments commonly traded in Europe. The initial issue will be a yield enhancement product linked to Alibaba Group, featuring an autocall feature.
• ICBC and BOC, two of China’s largest banks, reported significantly reduced profit growth in their interim financial results due to challenges posed by a slowing economy and ongoing crises in the property sector.
• China aims to extend its social credit system to the metaverse and other virtual worlds.
• Israeli payments company Payoneer witnessed significant growth in China, generating over 50% YoY revenue growth in that market in Q2.

Other Read

• NPR Interview with Tao Wang (Chief China Economist at UBS): Why China’s economy hasn't recovered after COVID as expected? 
• Evergrande bankruptcy points to China’s brewing property crisis.

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