The Impact Of Housing Loan On Household Financial Asset Portfolio

In 1998,China transformed housing distribution into housing commercialization,which promoted the rise of the real estate industry.The real estate industry has become the pillar industry of our social economy.Since the implementation of housing commercialization,the real estate market has been greatly influenced by national policies.The market will change with the change of policies.The proportion of household assets invested in financial market is less than 10%.The proportion of housing assets in total assets is the highest,accounting for more than 70%.In the family financial assets,deposits account for the first place,accounting for about 50%of the proportion,and stocks are the second,but the proportion is less than 10%.This shows that the distribution of household assets in China is unreasonable,and the expenditure on housing assets occupies the majority of household expenditure,which makes households reduce their investment in risky assets.In addition,our families know little about financial products.Many families do not even know about financial products.They do not hold other financial products except deposits.Therefore,our families have a lot of space to understand and invest in the financial market.We should gradually increase the role of the family sector in the development of financial markets.With the promotion of policy and real estate industry,China's real estate industry has developed rapidly.In recent years,house prices have soared,and prices have multiplied several times,which has increased the pressure of just-in-demand buyers.Because housing needs huge investment funds,most families need to accumulate decades of funds to be affordable.In order to enjoy housing in advance,they will choose to pay down first,then apply for housing loans,through monthly repayment of fixed principal and interest,repay the loan within the repayment period.The term of housing loan is generally 20 years and 30 years,and the family has to repay the fixed amount of principal and interest every month.The amount and interest rate of housing loans are related to housing prices,which are high in price,high in down payment and high in monthly repayment.Therefore,with the soaring housing prices in China,housing loans are bound to continue to increase.According to the life cycle theory,families will allocate assets according to their lifetime wealth.Household housing loans take up a quarter or more of a person's time from the beginning of work to the end of life,during which the family deducts this part of the fixed liabilities from disposable income and then distributes them.This shows that housing loans will inevitably affect the allocation of household assets.Based on the data of China Family Finance Survey(CHFS),this paper uses the data of 2011 and 2013 to describe and analyze the family characteristics,including population,age,income,education level,risk preference and marital status,and to analyze the structure of family financial assets and the structure of family financial assets.Then,according to CHFS data,taking the fictitious variables of housing loans and the proportion of housing loans to income as explanatory variables,and family characteristics as control variables,Probit and Tobit regression were used to analyze the relationship between housing loans and the allocation of household assets,and the heterogeneity of the relationship.This paper also divides families into just-in-need families and investment families,and analyses the impact of the two families on the relationship between housing loans and household financial asset allocation.Finally,according to the income ratio of housing loans,the grouping analysis is carried out.The main purpose is to find out the extent to which the income ratio of housing loans has the greatest impact on the allocation of household financial assets.Through empirical analysis,it is found that there is a negative correlation between housing loans and the participation of household financial market.The proportion of housing loans and household risky financial assets in China has a significant negative correlation.When the ratio of housing loans is between 20%and 30%,it has the greatest impact on the proportion of household risky assets.The impact of housing loan on investment family financial market participation is greater than that on just-in-demand family financial market participation.And there are heterogeneity in the allocation of household financial assets in China.The impact of housing loans on urban household financial assets allocation is greater than that on rural household financial assets allocation.The impact on household financial assets allocation in eastern region is greater than that in central and Western regions.Based on the conclusions,the paper puts forward suggestions to the government,financial institutions and families to help families rationally allocate assets,improve the income of family assets investment,promote the development of financial markets and promote social and economic prosperity.