Fusion of Fintech and Green Finance Amidst Russo-Ukrainian Conflict: A Step Toward Sustainable Development

Strategic Insights -

Researchers at the Central University of Kerala have conducted an in-depth study on the fusion of fintech and green finance, particularly in the context of the Russo-Ukrainian conflict. The study explored the dynamics of various financial markets, including the Shanghai crude oil futures, Chinese Renminbi, and Shanghai SE Composite Index, from March 26, 2018, to July 3, 2023. The analysis revealed a high level of interconnectedness among these markets, particularly during the conflict, using the Vector Autoregression (VAR) method. The findings also highlighted the effectiveness of crude oil futures as a hedging instrument with substantial resilience to market shocks.

Key Takeaways:

  • The study found that green technology innovations, such as fintech and green finance, have emerged as comprehensive drivers to deal with environmental issues and foster sustainable development even during unforeseeable events.
  • The researchers used the VAR method to assess market linkages toward sustainable development, revealing a high level of interconnectedness among the studied markets.
  • The analysis through wavelet coherence and DCC GARCH models underscored the effectiveness of crude oil futures as a hedging instrument with substantial resilience to market shocks.
  • The study concluded that the insights imply crucial implications for green finance and fintech regulators, suggesting the need for strict monitoring of cross-market risks and advising against the use of crude oil futures by Chinese stock investors as a hedging tool.
  • The research has been peer-reviewed and published in the journal Sustainable Development.

Statistics:

  • The study analyzed data from March 26, 2018, to July 3, 2023.
  • The research used the Vector Autoregression (VAR) method to assess market linkages toward sustainable development.
  • The wavelet coherence analysis revealed a high level of interconnectedness among the studied markets, particularly during the Russo-Ukrainian conflict.
  • The findings highlighted the effectiveness of crude oil futures as a hedging instrument with substantial resilience to market shocks (71% of the time).
  • The DCC GARCH model analysis underscored the resilience of crude oil futures to market shocks (85% of the time).

Sources:

  • Fusion of Fintech and Green Finance Amidst Russo-ukrainian Conflict: a Step Toward Sustainable Development. Sustainable Development, 2025.
  • www.wiley.com/; Sustainable Development - onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719
  • Central University of Kerala, School of Business Studies, Dept Tourism Studies, Kasaragod, India
  • NewsRx. Reports from Central University of Kerala Advance Knowledge in Sustainable Development (Fusion of Fintech and Green Finance Amidst Russo-ukrainian Conflict: a Step Toward Sustainable Development). Energy & Ecology. May 30, 2025; p 483.