China's tech advances and reserves to shield fincos from risks

But not every finco will benefit from positive industry developments.

Chinese financial companies’ (fincos) losses are expected to benefit from the country’s technological advances and financial reserves keeping economic risks at bay, according to S&P Global Ratings.

The energy crisis, trade fiction, and weak domestic demand beset China, but the country’s economic transformation, diversified economy, and significant financial reserves will help the country to navigate through these challenges, the credit rating agency said in a report on 16 September 2026.

“This lowers the economic risks facing Chinese finance companies and bolsters their resilience to future downturns,” S&P said.

China's efforts to build up its tech expertise and pivot away from debt-fueled growth in traditional sectors will guide fincos to rebalance their asset structure for sustainable growth, in our view.

According to sector statistics, the regulated leasing companies doubled their exposure to computing power and new energy storage areas in 2025, albeit from a low base.

Not every Chinese financial company will benefit from positive industry developments equally and immediately, said S&P.

“For some rated fincos, enhanced resilience and economic transformation may take time to translate into stronger profitability and higher stand-alone credit profiles than their current categories,” it said.

China’s finance ministry recently injected a combined $54b into state-owned insurers and banks, according to media reports.