Positive momentum can be seen across Asia in the consumer and SME lending market, backed by P2P lending platform, venture capital, and other investors (1) (2) (3) (4) (5) (6). The maturing lending market increases reliability and offers scaling opportunities for investors (7) (8), however there remains the risk of overheating of the market due to the increased attention by larger investors looking to capitalize on the potential gains. In order to outperform the market it is vital to ensure careful attention is paid to due-diligence and loan selection processes (9) (10).
Machine translation technologies are facilitating the growth of online educational tools in China, leading to increasing valuations and improved investment opportunities (11) (12). International investments increase business opportunities in online education platforms, with a particularly focus on English-learning-for-kids (13).
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The growing Asian Middle Class will lead to increasing discretionary spending by wealthier consumers, resulting in an expanding consumer market and strong GDP growth in those nations (1). The tremendous scope for growth in fintech and retail banking in Vietnam is primarily led by the up-and-come middle class consumers (2). A stronger middle class consumer base also contribute to an increase in the regional tourism market (3). Additionally, the continued increase in Market Efficiencies is useful for multiple expansion due to better governance (4).
Japan’s female labour force continues to rise, increasing household income and economic growth potential (5). Market analysis concludes that Japanese Small Caps are currently 18 undervalued and strong growth potential (6). Nevertheless there are some negative outlooks 19 on the Japanese economy which could carry a rather high correction risk (7).
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Non-traditional banking and financing services are on the rise with companies such as Grab moving into micro-financing (1), Australian SME’s looking for alternative lending options (2), and other Fintech companies moving into virtual banking services (3). China’s recent move to open their payments market to foreign investors could provide a boost for innovation and increase investment demand (4) (5).
Overall, the Fintech market is at risk of overhype (6) (7) but first signs of the end of the hype cycle are evident in Asia’s decline in Fintech investments (8) and China moves to tighten regulations (9).
Growing demand for digital marketing is increasing the importance of firm’s online presence, and the services offered by digital ad platforms (10). The E-commerce market continues growing (11) as Alibaba expands their business to South Asia (12) and, back in China, Pindodu grows to one of the largest e-commerce apps, capitalizing on their WeChat user base (13) (14). The E-signature market continues to grow as DocuSign pushes for more financial services to accept online signatures as they prepare to go live with their IPO (15).
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China’s Electric Vehicle market is rapidly growing, with car sales projected to overtake Europe and the US by 2025 (1), China plans to invest heavily in battery production (2) to facilitate the adoption of EVs to rival Tesla’s own Model X (3) and push self-driving technology forward (4).
Positive investment dynamic in transportation-sharing and food delivery industry (5) (6), including growth in ride-hailing sector as Alibaba prepares to invest in Grab (7). Transportation service companies such as Uber continue to expand their business scope (8).
Chart of the day: China is leading a surge in electric vehicle sales
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