China continues to attract huge investment from venture capital (VC) investors in financial technology (fintech) space, despite downturn in the global investment across startup companies. This is according to a report jointly-published by KPMG and CB Insights.

The report claims that a total 12 deals were sealed in China during the third quarter, with VC's investing reaching nearly $1 billion across these deals. In the previous financial year, 13 deals were inked, but these deals could fetch only $600 million from VC's.

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With robust performance shown by Chinese fintech companies, VC investments in Asian fintech firms saw a sharp 50 percent increase during the third quarter. However, the number of deals declined to 15 months low. Globally, funding in fintech companies declined 17 percent to $2.4 billion.

The report said that VC's are showing great interest in payments and lending while they are equally excited about the insurance using technology (InsurTech) space.   

It noted that Chinese people are increasingly using mobile phones to make small transactions, with retailers choosing online payment instead of cash payment to pay their bills.

This observation was echoed during Alibaba's Singles' Day event on Nov. 11, where more than 80 percent of the 120 billion yuan ($17.6 billion) transaction was transacted on smart phones.

The report also took note that Blockchain technology, such as is used in virtual currencies, has become dominant part of payments and lending services. And its importance is likely to grow further in the fintech space.

By end of the current year, the report expects Asian-based fintech firms to surpass last year's investment record of $4.8 billion.

TagsFintech China, Fintech, venture capital funding, Venture Capital China