Research On The Factors Affecting The Financial Asset Allocation Demand Of Chinese Household

Since the reform and opening up,Chinese households have been allocating their financial assets mainly to bank deposits,with less investment in risky financial assets.In 2021,China’s per capita disposable income has reached RMB35,128.At this stage,as the wealth level of China’s residents increases,the investment concept of resident households is also undergoing an important change,and increasing the proportion of financial asset allocation has become a trend among Chinese resident households.With the dual regulation of supply and demand,equity assets are taking up an increasing share in the financial asset allocation of Chinese residents’ households.With the dual regulation of supply and demand,equity assets are becoming an increasingly important part of the financial asset allocation of Chinese households.As investors’ financial knowledge increases and their understanding of financial management becomes more mature,the idea of active financial management is highly respected.Currently,China’s financial market is tightening its regulation of capital,while the results of China’s market development are deepening,prompting residential households to become richer in investment methods,investment channels and investment varieties,and investors are able to access more financial products.Financial assets are an important source of household property income,and their reasonable allocation is of great importance to increase total household income and enhance the wealth level of resident households.First of all,this paper analyzes the current situation and characteristics of China’s resident household financial asset allocation,summarizes the differences between the current situation of financial asset allocation in China,the United States and Japan through comparative analysis,and outlines the unreasonable structure of China’s resident household financial asset allocation.Using the 2019 CHFS research data,this paper empirically investigates the factors influencing the financial asset allocation needs of Chinese households,and analyzes the effects of four factors-demographics,total household income,risk preference,and total household debt-on the proportion of financial market participation and financial asset investment of Chinese households by constructing Probit and Tobit models,respectively.Based on the results of the empirical analysis,this paper makes targeted suggestions for optimizing the financial asset allocation of Chinese households at four levels: government,regulators,financial institutions and investors,respectively.