The Chinese fintech industry has been growing rapidly, Recent catalysts include the launch of the digital yuan amid substantial federal backing. Based on this, analysts expect the Chinese fintech stocks like 360 DigiTech (QFIN), FInVolution (FINV), and Jiayin Group (NASDAQ:JFIN) to witness solid upside in the upcoming months.China became the world’s first country to introduce a digital currency last month. The country’s fintech industry is one of the most advanced compared to the rest of the world, with comprehensive regulations to prevent regulatory arbitrage and unfair competition.
Given the increasing number of financial meltdowns caused by lack of oversight on the biggest financial institutions in the world, China’s aggressive monitoring approach is expected to mitigate excessive risks. The country is currently overseeing the restructuring of the highly controversial Ant Financial Services Group, following which the Ant IPO is expected to be scheduled. This should bolster the country’s fintech industry, owing to the Alibaba-backed company’s global market reach.
Also, the digital Yuan might pose as a competitor to the US dollar, which has been the reserve currency for decades. The high volatility of the US dollar, combined with rising inflation and benchmark Treasury yields, makes the prospects of the Chinese fintech industry promising.