Navigating Systemic Financial Risks in the New Normal: Insights from Fintech and Traditional Finance

In recent years, China's economy has become a new normal with downward pressure, and fintech integration has been spawning derivatives, off-balance-sheet expansion, and rising risks. Systemic financial risks have become a crucial research topic. Current systemic risk measurement mainly uses classical financial data focused on traditional financial fields, while few studies comprehensively consider fintech risk quantification. This paper fills the gap with TENET, combining classic financial emergencies and fintech events to probe risk spillovers. Empirical results show that an uneven risk structure shows higher risk spillover of the fintech sector, with prominent fintech-securities spillover. Meanwhile, the risk evolution path is fixed, with software and information technology services-related fintech institutions acting as core transmission nodes. Classic risk events mean stronger spillover strength, while new fintech events imply a broader scope of impact. It reveals fintech's role, guiding regulators and ensuring financial health.