The study looked at how the rapid growth of China's financial industry might lead to financial risks. They used data from 30 provinces in China from 2006 to 2019 to see how financial expansion affects financial risks. The results showed that there is a "U-shaped" relationship between financial expansion and financial risks. Factors like factor market development, real estate investment, financial decentralization, and financial regulation can either increase or decrease this relationship. The impact of financial expansion on financial risks is stronger in eastern regions or economically underdeveloped areas.