China has become the world’s top financial and technological power


nnnIn the global financial technology competition increasingly fierce situation, China’s performance is very prominent, has occupied a leading position in the field. The emergence of the financial and technological revolution in China has a number of reasons, this article on the theme of the analysis, so that people more deeply understand why China needs this revolution and why it can make great progress in China. China’s current momentum suggests that it will continue to lead the development of global financial technology in the future.n
nnTranslated by: Inan
nThe world’s major financial and innovation centers are competing to become the “World Financial Technology Center”, in this regard, China is not only behind, even beyond the New York, Silicon Valley and London and other major cities. Many people even claim that China’s Pearl River Delta cities are becoming “new Silicon Valley”. Although this comparison may not be entirely appropriate, it is not unfounded. China’s unique place is that it has a number of financial and innovation centers, for China’s financial science and technology ecosystem to provide different but complementary value. Shenzhen is the seat of Tencent headquarters, Hangzhou has Alibaba, Shanghai is the national financial center, and Beijing has a number of the country’s largest start-up companies and venture capital companies, which are for the ecosystem to provide a different but beneficial features.n
nSo where does China’s financial science and technology revolution come from? Why is this revolution swept in China so much, so fast?n
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nA large number of people do not have financial servicesn
nFirst of all, China’s large population needs have not been met. As China’s capital market structure is relatively new, many of the Western countries left in China is no longer exist. In addition, China’s major banks are state-owned enterprises (ICBC, Agricultural Bank of China, China Construction Bank and Bank of China). They mainly provide loans to large state-owned enterprises, making most of the population – especially small and medium-sized enterprises – without access to appropriate channels for loans and credit. Here is where the Chinese technology giants – Baidu, Alibaba and Tencent (BAT) play a role. China’s smartphone penetration is comparable to that of Europe, but contact with the local banking system is similar to that of other developing countries (approximately 20% of the total loans). China’s technology companies are already ready to use financial technology applications to serve these groups.n
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nChina Internet popularityn
nAnother driving force in the emergence of financial and technological revolution in China is the large number of Internet and smartphone users. China has more than 700 million Internet users, more than twice the total population of the United States. From the perspective of Chinese consumers using mobile phones to pay for mobile payments (thanks to WeChat and Alipay), financial technology applications in China’s adoption rate will be much higher than other countries. For example, 40% of consumers in China use non-traditional payment methods (such as Alipay), while Singapore’s ratio is only 4%. This will not stop at the time of payment, but also to insurance technology, and the use of financial technology and wealth management platform.n
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nChina e – commercen
nAlibaba’s Taobao and Lynx and Jingdong Mall and other major business platform allows people to quickly and easily electronic payment, which can use financial technology applications (such as Alipay) to complete. This not only creates opportunities for the payment of financial technology, but also creates opportunities for loans, insurance, investment and wealth management. China’s financial technology companies have made use of China’s e-commerce trends, the use of e-commerce, communications, search, social media and other Internet services to provide customers with personalized experience, new services and operational efficiency.n
nSome of China’s more advanced financial institutions have launched their own digital and financial technology platforms, including e-commerce, electronic payments, online loans and financial services. In addition, the old institutions in cooperation with early financial technology companies or the use of its technical services in the past failed to get the service of consumers. This is not possible if there is no user and business information and online banking functions for large e-business participants.n
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nChina’s block chain and digital currency situationn
nIn the past, the block chain in China is only the academic and research institutions of concern, but this situation has changed. China has emerged some chain-chain alliances and organizations, among which China’s Distributed General Ledger Basic Agreements Alliance, the Financial Block Chain Alliance (Shenzhen) and Qianhai International Chain Chain Alliance have pioneered the best block-chain practice in some industries The In addition, China’s emerging chain of chains and digital currency participants, such as NEO and Bitshares, are also gradually turning into a leader in the field of encryption.n
nAlthough Bitcoin is still in the gray area of ​​law in China, it is indisputable that China is a world leader in Bitcoin mining. China’s mining pool controls more than 70% of the coin network, and many mining companies will use the cheapest power and real estate advantages of China’s poorest western region.n
nIn addition, the Chinese government has begun to focus on the exploration of block-chain technology, and even began to test and explore the block in the social management of the use cases, and seek to yuan the yuan.n
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nfuture development n
nIt is not surprising that China is the world’s leading country in financial technology. It has the world’s largest population, the Internet and mobile phone popularity and utilization are high, is expected in the next few years to continue to maintain the leading position in the field of financial technology.n

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