Doing Business in China: Australian fintech start-up views China as a main show

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Financial technology services are one of the fastest growing sectors in Australia. And one of the challenges for fintech start-ups there is to figure out how to break into the country's biggest export destination -- China. CGTN's Greg Navarro went to such a company in Australia and found out why it's viewing China as a main show.

The process taking place inside a Sydney office building may not be obvious at first glance. It's dedicated to people who are developing financial technology businesses - an industry that was relatively unknown here just a few years ago.

ALEX SCANDURRA CEO, STONE AND CHALK "I returned from London in Christmas 2014 and when we were engaging more broadly in Australia and talking about fintech it was still this thing that was happening in London and other parts of the world - you know people were just trying to get their heads around what it actually meant."

Stone and Chalk is a fintech incubator - created to foster start-ups in a rapidly expanding industry.

GREG NAVARRO SYDNEY "In fact during the relatively short time that Stone and Chalk has been in business, the number of fintech start-ups has grown dramatically from 100 to nearly 600 today."

ALEX SCANDURRA CEO, STONE AND CHALK "One of the key philosophies we try and instil in all of the startups is to think global and be global from day one."

That means finding ways to get into export markets including China - Australia's biggest trading partner. A market made even more attractive by a growing middle class - and a transition to a more consumption-based economy.

DOUG FERGUSON PARTNER IN CHARGE OF ASIA, KPMG "China is the main show, it is such a compelling proposition and Australian companies, boards that oversee the executives - they know that."

But Stone and Chalk CEO Alex Scandurra says doing business in China can be challenging for financial technology companies.

ALEX SCANDURRA CEO, STONE AND CHALK "It is extremely complex and regulations changes, from memory, across provinces and for any start-up or even maturing scale up, that represents quite an investment requirement to even understand the complexity of what they are dealing with."

Jim Harrowell is the New South Wales Special Envoy For China.

JIM HARROWELL NEW SOUTH WALES SPECIAL ENVOY FOR CHINA "China is of fundamental economic importance to Australia. The decision by Deng Xiaoping to open the door was a game changer for the Australian economy, the Australian business community and just the general community in Australia because it opened so many opportunities."

Scandurra says the Australian fintech start-ups that are already doing business in China have managed to overcome those regulatory obstacles.

ALEX SCANDURRA CEO, STONE AND CHALK "I think there is a strong willingness to somehow figure out what we are good at here and what potentially different firms are good at in China and how to make that work."

The key he says is finding the right paths into the market and the right people to partner with to make the desire to be global - work. Greg Navarro, CGTN, Sydney.