Robustness test: Using Logit model.

Based on the panel data of Chinese Family Panel Studies (CFPS) and cities from 2012 to 2020, this paper explores the impact of financial spatial structure on household financial vulnerability and the moderating effect of financial regulation and financial technology from the perspective of the “local market effects” and “spatial spillover effects” of finance. It is indicated that: firstly, the “local market effects” and “spatial spillover effects” of financial spatial structure effectively alleviate household financial vulnerability and the conclusion is still hold true after conducting endogeneity analysis and a series of robustness test. Secondly, promoting household entrepreneurship, optimizing asset allocation, and enhancing residents’ financial literacy are crucial channels through which financial spatial structure influences household financial vulnerability. Thirdly, financial regulation helps to build a fair and transparent financial market, thereby strengthening the positive effects of “local market effects” and “spatial spillover effects” of finance on household financial vulnerability. Financial technology has improved the quality and efficiency of traditional financial services, helping to further leverage the “local market effects” of finance, while it has no obvious impact on strengthening the “spatial spillover effects” of finance. By subdividing the application areas of financial technology, it is observed that the digitalization of payment and insurance businesses can help alleviate household financial vulnerability through the “spatial spillover effects” of finance.