An Empirical Study On The Impact Of Family Housing Wealth On Stock Market Investment

In recent years,China's housing prices have risen sharply.Facing the acceleration of housing price growth,housing investment has become an important way for urban and rural residents to invest.With the rapid development of the real estate market,China's stock market and other risky financial product markets have been developing relatively slowly or even in a downward trend.Taking the Shanghai stock index as an example,it has been in a state of low volatility since the high decline of 6124 points in 2007.,The sluggish stock market has led many families to opt out of the stock market and look for other investment channels.The development of the real estate marke t and the downturn in other financial markets have attracted the attention of researchers.Some opinions suggest that there is a reverse development relationship between the real estate market and the stock market.It is the slow development of the stock m arket that has promoted the unprecedented development of the real estate market.Therefore,this article will try to explore the reasons for the mutual influence of the two cities based on the investment choices of the families from the micro perspective.This paper uses the data from China Household Finance Survey 2017(CHFS)to separate the wealth of residents from their net worth and home loans.The Probit model and Tobit model are used to examine the impact of net home value on household participation i n stock ratios and shareholding ratios.At the same time,the interactive item of net housing value and the existence of a provident fund is introduced to examine the regulating effect of provident funds on household stock market investment.In addition,control variables such as head of household age,gender,education level,risk appetite,physical health status,number of family members,annual household income,family current assets,and whether or not a rural household registration are added.The empi rical results show that the increase in the net worth of the house will significantly increase the proportion of households participating in the stock market and the shareholding rate,but the interaction between the net worth of the house and the providen t fund will have a certain inhibitory effect on the participation rate of the stock market and the stock holding rate of the household.Other control variables,the annual household income,the age of the head of households,the number of current household assets,the education level of the head of the household,and the participation rate of the family in the stock market and the stock holding rate are significantly positively correlated.Residents are more willing to invest in the stock market.Based on t he conclusions of this research,this article suggests that financial institutions should provide professional advice and advice to clients on the impact of net housing value and the availability of provident funds on household equity participation rates,and provide clients with professional advice and recommendations.Investment strategy to reduce the cost of information entering financial markets and attract capital inflows.At the same time,diversify the types of financial products and avoid the emergence of homogeneous products,so that customers can have more different options,and can diversify their investments as much as possible to reduce risks.Make full use of the convenience brought by the progress of communication and information technology,r educe transaction costs and market friction,and improve the efficiency of financial market operations.Strengthen employee training,improve internal control management systems,and reduce and avoid losses from operational risks.