Factors Analysis Of China Household Consumer Finance

In some foreign mature capital markets, consumer finance has shown vigor potential. Recently, family’s disposable income, consumption and residents’ overall level of financial awareness also improved with economic developing, and always shows significantly social progress changing. However, family participation in consumer finance activities, compared to other countries is still considerable insufficient. Study the factors that may affect family consumer finance decisions, we can find ways to urge family to participate more in financial activities, which has great meaning to government control.Family consumer finance can divide into two parts: one is household consumer credit; the other is financial investments. In addition, more and more family buying houses not just for the current consumer utility. Considering this, we only consider house usage, when family only has one case of real estate property; if family owns a second set of real estate or more, we assume that family’s main purpose is the estate investment value. In other words, when its family first home purchase, the credit is the consumer credit; if else, like second purchase or subsequent sets, it’s not the case we discussed here.The general idea is based on China’s household consumption status in formal financial markets; we find the significant characteristics, and then build Probit models. Factors divide into two parts: one is household characteristics; the other is external financial market conditions. Finally, we found that urban development under the representative of the availability of financial services have the most significant effect on family consumer decisions, while individual risk attitude have second significant effect. Other factors not perform well as they do in the household survey. At the same time, we added stock, commercial insurance and financial institutions on behalf of the family financial planning factors that influence the behavior of household consumer credit. After regression, we found there is a significant exclusion effect between financial institutions investment and consumer credit; while stock and commercial insurance are not obvious. Finally, we propose policy recommendations like developing public finance policy; increasing household financial information library construction and financial education to urge family participates more in consumer finance.