Meanwhile, finance has also supported and boosted the development of tech companies through credit and capital markets. That the financial sector is among the first to widely apply technological achievements has been an important driving force for technological progress. Some banks and insurance companies have already set up influential tech companies. Fintech application in China has been world-leading in many aspects.
The most effective measure for greening the economy is adequate pricing of carbon emissions. Doing this will lead to relative price changes and the reallocation of resources across sectors. The greater the delay in implementing such government policies, the more abrupt the transition will be. This raises the risk of stranded assets on balance sheets and shock-induced revaluations of financial sector exposures.