Dynamic connectedness and portfolio strategies: Insights from fintech, robotics, renewable energy, and green bonds in China

This study investigates the dynamic interactions between fintech, robotics, renewable energy, and green bonds in China's market, focusing on sectoral spillovers, their determinants, and optimal portfolio strategies. While prior research has often examined these sectors in isolation, their interconnected dynamics within China's green finance framework remain underexplored. Employing an extended joint connectedness approach and quantile regression techniques, this study analyzes the interdependencies among these sectors and evaluates the influence of macroeconomic factors, including Chinese sovereign credit risk, the Yuan-Dollar exchange rate, and global volatility indices. The findings highlight fintech's fundamental role in return transmission and the robotics sector's pronounced sensitivity to external shocks. Moreover, the study demonstrates the feasibility of a minimum connectedness portfolio strategy, which optimizes investment outcomes by leveraging reduced intersectoral correlations during environmental policy shifts. These insights offer valuable guidance for investors, policymakers, and financial advisors, emphasizing the strategic importance of fostering cross-sectoral collaboration to drive technological advancement, job creation, and environmental sustainability in China's market.