The Influence Of Social Trust On Household Asset Allocation In China

Since the reform and opening up,with the continuous development of China’s economy,the capital market has also ushered in unprecedented opportunities for good development.The financial market has been constantly developing and the financial products have been constantly enriched.However,in China,the problem of unbalanced and inadequate development still exists,which is embodied in the imbalance between urban and rural development,unreasonable household asset allocation mode,low participation in the risk financial market,and unsatisfied people’s demands for a better life.At present,in order to improve the principal contradiction in our society,it is necessary to effectively and steadily increase the family property income,improve the trust of the family risk market,so as to improve the participation in the risk financial market and the return on risk assets,and more reasonably allocate our own assets.Previous studies have studied household asset allocation from the perspectives of income and education,etc.This paper studies how to reasonably allocate household assets from the perspective of social trust.Adopt the CHFS survey data,this paper first on China’s social trust and family is a basic asset allocation,Secondly,respectively using the Probit model and Tobit model,the empirical research on social trust of family risk financial market participation,family holding risky assets and family risk investment.Then it studies the influence of social trust on the different asset allocation of urban and rural households under the dual structure,and finally puts forward policy Suggestions to improve the participation of family risk financial market.The results show that,first of all,social trust has a significant impact on the participation of family risk financial market and the proportion of family risk assets.Second,families with high social trust are more likely to choose to diversify their investments,while families with low social trust are more likely to choose to concentrate their investments.Then,with the increase of social trust,the probability of participation in the risk financial market is higher for the highly educated group and the high-income group,but the proportion of risk assets of the low-income group and the low-educated group increases more.Finally,the risk of urban household participation in financial markets is far higher than the risk of financial market participation of rural households,social trust risk to urban residents participation in financial markets is greater than the influence of the impact on rural households.