Research On The Influencing Factors Of Household Asset Allocation

At present, China households are facing diversified portfolio choice, wider investment scope, varieties of investment products, but also accompanied by complex potential investment risk.Thus, households need to optimize asset scientifically and get rational guidance of asset allocation. Firstly, we conduct a review of relevant literature on portfolio choice and household asset allocation, explore the influencing factors and mechanism of household asset allocation in a meticulous way, and then form a more comprehensive and systematic theoretical analysis framework of household asset allocation. From the macroscopic and microscopic view, we investigate the present situation on scale and structure of household asset allocationin in our country. Through comparative study on the status of household asset allocation from the United States, major European countries and countries in the Asia-Pacific region, we find extant problem of household asset allocation in our country.Based on the theoretical analysis and data exploration, we use China household financial investigation micro data to construct Tobit model from the perspective of the amount and structure of financial assetsallocation, then do a research on the behavior of china household asset allocation carefully and comprehensively, especially to explain and verify how the factors effects the amount and structure of financial assetsallocation, such as household demographic characteristics, income levels, scale of wealth, risk attitude and housing holdings status. The results show that the household demographic characteristics, especially age and education degree, significantly have impact on household financial asset allocation. From the total perspective, the amount of household financial asset allocation showed a trend of "inverted U" type and significant life cycle effect. From the structural perspective, the life cycle effect is particularly evident on financial assets allocation accounted for the proportion of financial assets, especially in 36-44 years old age group of households prefer to risk financial assets. Risk attitude has significant effects on total household financial asset allocation, which also reflects the outstanding effect on allocation decision of financial asset. Whether from the total perspective, or from the structural perspective, income effect and wealth effect show significantly on the household financial asset allocation. Total household financial assets allocation or the allocation proportion of various types of household financial assets has obvious differences between urban and rural areas.There is evident crowding out effect of housing for financial asset allocation.Finally, on the basis of the study, we put forward policy suggestions on optimization of household financial asset allocation from two dimensions of the micro and macro. Financial institutions should provide differential financial products and services based on different features of households. Households should make reasonable allocation on the total amount and structure of financial assets according to the stage of life cycle, income level, education background, wealth, and the corresponding risk tolerance of investment. Government should improve the level of income and the distribution of wealth in order to lay the ground for asset allocation. Meanwhile, they should attaches great importance to optimize and adjust asset allocation through policy formulation and macro-control.