BEIJING - Investment in China's venture capital-backed financial technology firms hit a record high in 2016, bucking the global downward trend, international accounting firm KPMG said Tuesday.

The total value of investment deals in VC-backed Chinese fintech companies soared 42.6 percent year on year to $6.7 billion last year, according to a report from KPMG.

Meanwhile, globally, investment deals in VC-backed fintech firms plunged 46.8 percent year on year to $25 billion.

The report attributed China's strong performance to three mega-deals in the first half of 2016 as the country's tech giants became active in the sector.

Larger fintech players in China are beginning to look globally to fuel their continued growth and are expected to engage in more international collaboration throughout 2017, said Arthur Wang, partner and head of China Banking with KPMG China.

Fintech refers to businesses founded on the purpose of applying technology to services in the financial system, such as mobile transactions.

As China upgrades its economy, moving from investment and exports to innovation, the government has been exploring ways to inspire creativity and promote technological improvement.

In the Asian fintech market, payments and wealth management dominated investment in 2016, the KPMG report said.

It predicted real-time payment options to drive significant fintech activity in Asia over the next few years as customers increasingly demand better options.