Research On The Impact Of Lquidity Constraint On China's Household Financial Asset Allocation

In 2006,Campbell took household finance as another emerging field of finance research after asset pricing and corporate finance,which attracted the attention and research of many scholars.The core issue of household finance is to study the factors influencing the allocation of household assets to money market instruments,bonds,stocks and real estate.In addition,with the improvement of residents' disposable income and the increasingly rich financial products and services,China's household asset allocation is no longer a single deposit savings,but starts to participate in the investment of risk assets.However,it is inconsistent with the classical investment theory that all investors will allocate risk assets,and China's household financial market participation is very limited.Therefore,this paper will try to summarize the factors that influence the allocation of household financial assets mainly based on liquidity constraints.By studying the existing research results,this paper takes liquidity constraint as an important explanatory variable and analyzes the relationship between liquidity constraint,household financial market participation and financial asset allocation from theory and demonstration.The Probit model was constructed by using Chinese household finance survey(CHFS)data to estimate the impact of liquidity constraint on household financial market participation and the Tobit model to estimate the impact of liquidity constraint on household financial asset allocation.The conclusion is that ?liquidity constraint reduces the participation probability of households in formal financial market;?liquidity constraint will increase the probability of family informal financial market participation;?Liquidity constraints will reduce the proportion of non-risky financial assets allocation,which is inconsistent with the theoretical analysis.The reason may be that when households cannot obtain credit funds from formal channels,they can only use savings to cope with current consumer spending;?Liquidity constraints reduce the proportion of risky financial assets allocation.Finally,this paper will put forward the corresponding suggestion on the basis of the conclusion.