The Impact Of Digital Inclusive Finance On Household Asset Allocation Of Urban Residents

With the transformation of China’s economic development from high-speed to high-quality,the demand for the preservation and appreciation of residents’ family property is also increasingly significant.We no longer satisfied with the low savings interest rate of traditional banks,but need diversified financial products to meet our needs.With the rapid development of digital Inclusive Finance in China,households have an increasing tendency to choose the financial assets and they are more likely to participate in venture financial investment than before.In this context,this paper mainly studies the impact of the development of digital Inclusive Finance on the family asset allocation of urban residents.The development and popularization of digital Inclusive Finance has raised the possibility of more people enjoying financial services,so that more families as a terminal unit can use various forms of financial services to enhance family wealth.In addition,improving the situation that household savings and real estate in household assets of urban residents is too high and optimizing the allocation of household assets can improve the sense of wellbeing of life.This paper adopts two research methods:literature research and empirical model.Firstly,it analyzes the development status and existing problems of digital Inclusive Finance,the status and problems of household asset allocation in our country,and expounds the theoretical logic and mechanism of digital Inclusive Finance affecting household asset allocation;Then use The Peking University Digital Financial Inclusion Index of China(PKU_DFIIC)and Peking University China Family Panel Studies(CFPS)as the main data sources set up the model and estimate it with the least square method(OLS),and seek the relationship between household asset allocation and the development of digital Inclusive Finance.At the same time,instrumental variables are introduced to overcome the internal problem,and sub sample regression that carried out in the eastern,central and western regions to test regional heterogeneity.The empirical results shows that the impact coefficients of the four indexes on the allocation of household assets and the choice of financial assets of urban residents are significantly positive.Compared with families in the western region,families with high years of education in the eastern region and families with low years of education in the western region,the role of digital Inclusive Finance in promoting family financial assets is more obvious.It shows that in recent years the popularity of the Internet and mobile phones,and the rise of telephone banking,online banking and mobile banking have expanded the radius of financial services and increased the proportion of household financial asset allocation of urban residents.Finally,the paper puts forward some countermeasures and suggestions to better developing China’s digital Inclusive Finance,promoting residents’ families to participate in the financial market,and optimizing the allocation of family assets in order to realize the demand for the appreciation and preservation of family property.