The Influence Of Social Medical Insurance On The Allocation Of Family Financial Assets

Since the reform and opening up for more than 40 years,the economy of China has developed rapidly and people’s living standards have been constantly improved.The increase in national income means the expansion of the household wealth.Although the investment demands and methods of households are gradually becoming more and more diversified in China,due to the lack of financial knowledge and precautionary savings for future risks,bank deposits still occupies a large proportion in the financial assets of households.Furthermore,a large amount of idle funds flow to the real estate market,leading to the single structure of family financial assets.As a source of direct financing for enterprises,the lack of resident’s stock investment has also aggravated the financing difficulties of enterprises,which has affecting the healthy development of the capital market.Therefore,it is necessary to study the factors which influence the allocation behavior of family financial assets in China.From the perspective of increasing family wealth and the proportion of direct financing for enterprises,it is also meaningful to encourage residents to participate in risky financial markets.According to the existing literature,the researches on the influencing factors of family financial asset allocation is mainly from the perspectives of demographic characteristics such as age,family wealth characteristics such as income,background risks such as health status and so on,while the research based on social medical insurance is rare.However,as an important part of social security,social medical insurance can affect family asset allocation by reducing family medical expenditures,precautionary savings and risk exposure.Therefore,based on the residents’ participation in social medical insurance,this paper studies the impact of social medical insurance on the allocation of family financial assets by combining the methods of theoretical analysis and empirical analysis.This article mainly includes five parts.The first part is the introduction,which mainly introduces the research background,research significance,core concepts,research objectives,research content,research methods,technical routes and possible innovations and shortcomings.The second part focuses on the theoretical analysis.On the basis of sorting out the related literatures on the influence factors of family financial asset allocation and the effect of social medical insurance on family financial asset allocation,the paper gives some comments about the relevant literatures.Then,based on the theories such as the modern investment portfolio theory,this paper analyzes the influence mechanism of social medical insurance on family financial asset allocation,and puts forward corresponding research hypotheses.The third part analyzes the current situations.Mainly based on the public data such as the China Statistical Yearbook,supplemented by the micro data of China Household Finance Survey in 2017,this paper analyzes the development process and status of Chinese social medical insurance,as well as the present situation and characteristics of household financial asset allocation.It also analyzes the correlation between social medical insurance and family financial asset allocation.The fourth part is based on the micro data of China Household Finance Survey in 2017.On the basis of the overall descriptive statistics and cross-analysis,the Probit models and the Tobit models are used to empirically analyze the impact of social medical insurance on the allocation of household financial assets,with the robustness test.The fifth part makes a summary of the research conclusions,and puts forward the corresponding policy recommendations.Based on the results of theoretical and empirical analysis,this paper draws the following two conclusions: First of all,the participation of social medical insurance has a significant impact on the allocation of family financial assets.The probability of participating in the risky financial market and the proportion of holding risky financial assets of the families who participate in the social medical insurance are significantly higher than those without social medical insurance.The higher the insurance fee and the higher the rate of family’s participation in insurance can lead families to holding more risky financial assets,due to the greater level of protection.Secondly,the impact of different types of social medical insurance on the allocation of family financial assets is heterogeneous.It’s because the level of various types of social medical insurance is different and the characteristics of the covered people are also not the same.This paper finds that the new rural cooperative medical system and the basic medical insurance for urban residents have no significant impact on the allocation of family financial assets.The basic medical insurance for urban and rural residents can only significantly increase the proportion of risk financial assets,but has no significant impact on the probability of families’ participation in the risk financial market.The public medical insurance and the basic medical insurance for urban employees can both significantly improve the probability of families’ participation in the risk financial market and the proportion of the risky financial assets that families holding.Based on the above conclusions,this paper proposes the following policy recommendations: Firstly,the existing social medical insurance system in China should be further improved by comprehensively establishing a multi-level social medical insurance system with the wider coverage and the higher security standards.Secondly,the income distribution system should be further improved in order to promote the growth of household wealth.Thirdly,the reform of the financial market should be further deepened.The residents should also be guided to rationally allocate their financial assets and to participate more in the risky financial market.