The Impact Of Credit Constraints On The Choice Of Family Financial Assets In China

With the development of China’s financial market and the improvement of the residents’ disposable income,the family becomes more and more active in the financial investment market.The market-oriented financial market has provided the rich investment channel for the family,the family changes to the financial assets from the unitary to the diversification,the family financial assets gross growth.Household financial assets can reflect the level of financial development of the country to a certain extent,total household financial assets increased to promote the development of the national economy,optimizing the structure of household financial asset allocation,will also promote the development of financial instruments in china.How to choose a variety of financial products,in order to achieve the goal of family wealth,improve the level of family income,the core of the family financial investment,has become the focus of financial research.The traditional capital pricing theory that all families will be some wealth invested in risky assets,the proportion of investment depends on the family’s attitude towards risk,but in our present financial risk free asset participation rate is too high,the financial risk assets in low rate situation,what is the cause of China’s high savings rate? What is the result of the limited participation of risk assets in China? This paper argues that the credit constraint is one of the important explanations.Firstly,credit constraints of household financial asset allocation theory summary on previous research on the relationship between the two is systematically analyzed.Then combined with the current actual situation,expounds the present situation and causes of China’s credit constraints and family financial assets allocation.Then,this paper uses the 2011 Chinese household financial survey data,I analyzed the national household credit status and household financial assets choice structure,estimated the number of credit constrained households,found to meet in our country nearly 21% of household credit.In view of this conclusion,we use the Probit model and the Tobit model in the empirical part,and make an empirical study on the impact of credit constraints on the participation degree and the depth of participation of family financial assets choice in china.In order to more accurately measure the effect of credit constraints on financial asset selection of our family,the family financial assets into family financial risk assets and family financial risk-free assets,in order to studythe credit constraints a better effect on these two kinds of assets,combined with the actual situation of China’s urban and rural development is not balanced.From the angle of city and countryside are analyzed respectively.According to the final results of the empirical conclusions: credit constraints will hinder the family financial assets involved,and reduce the family wealth allocation in proportion of financial assets;credit constrained households will reduce the risk of financial assets and financial risk free asset participation rate and the depth of participation;the factors of credit constraints have significant effect on rural household financial assets choose a city more family.In view of the empirical results,this paper gives some policy recommendations to reduce the credit constraints and promote the rationalization of China’s family financial assets structure.