Development Of Digital Inclusive Finance And Households’ Investment In Risky Financial Assets

China’s Digital Inclusive Finance(DIF)has witnessed a rapid development since 2010.Due to the development and widely use of digital technology and Internet information technology,financial products and services which are more beneficial,more convenient,more transparent and more diverse have been supplied to those households in rural and remote area,households with low income,and households that are repelled by traditional finance system.This change raises households’ financial knowledge and risk tolerance,and increases their family income and wealth.Now China households demand more investment in risky financial assets,and their investment decisions need to be improved.The research about the effect of DIF on households’ investment behavior in risky financial assets is important to the increase of household wealth,the construction of capital market,and the high-quality economic development.Based on related literature and classical economic theories and financial theories,this thesis carries on a theoretical analysis about the reasons,heterogeneity and intermediate mechanism of the influence of DIF on household risky financial asset investment,and puts forward a series of research hypotheses which are tested empirically by using 2017 CHFS data and DIF Index.Considering the research questions and data characteristics,this thesis chooses Probit model,Tobit mode,instrument variable regression model,heterogeneity test model,and mediating effect morel to carry on the empirical test,and get the following results.Firstly,the development of DIF significantly promotes household investment in risky financial assets.Secondly,this promoting effect is more significantly embodied in those households in rural and remote areas,and households with low income.But households with high education level benefits more from this effect because the application of digital technology demands a high education level.Thirdly,the development of DIF promotes household investment in risky financial assets by raising the financial literacy and risk preference of households.Based on above conclusions,this thesis puts forward some political suggestions on how to make full use of DIF to promote household investment in risky financial assets,on how to guide the investment behavior of household scientifically,and on how to increase the wealth of households effectively.