The relationship between FinTech and energy markets in China

Understanding the interplay between financial technology (FinTech) and energy transition risks is essential for addressing financial challenges and enabling a smooth energy transition. This study examines the dynamic relationship between FinTech and energy transition risks using the TVP-VAR model, with a time span from July 2017 to April 2024. The results reveal that while FinTech's direct influence on energy transition risks is limited, these risks significantly hinder FinTech's growth. By analyzing three key historical events, we uncover how energy transition risks impede FinTech through mechanisms like energy market volatility and the green electricity market. Unlike conventional static risk assessments, this research offers a dynamic and nuanced perspective on risk management by examining specific measures and market responses during historical events. This approach provides valuable insights for navigating the evolving landscape of FinTech and energy transition, contributing to more effective risk mitigation strategies. • Examines Fintech-energy transition risks via TVP-VAR model. • Finds energy risks hinder Fintech growth, limited Fintech impact on risks. • Analyses historical events, highlighting energy market volatility mechanisms. • Offers dynamic insights for Fintech risk mitigation strategies.