The impact of FinTech credit on growth in capital expenditure: Evidence from Chinese manufacturing firms

Using a large panel dataset of Chinese manufacturing firms from 2013 to 2019, this study examines how FinTech credit affects firm-level capital expenditure growth. We find that FinTech financing enhances capital expenditure growth in China, particularly in industries that are more financially dependent. When decomposing total FinTech credit, we find that balance sheet lending and P2P lending are positively associated with capital expenditure growth, whereas crowdfunding is not. Overall, these findings suggest that specific FinTech financing models can ease financial constraints and promote long-term investment among Chinese manufacturing firms, underscoring the role of digital finance in corporate growth.