Research On The Impact Of Digital Finance On The Efficiency Of Household Financial Asset Allocation

With the increase of residents’ wealth and per capita disposable income,the demand for financial products by households is also constantly increasing.Optimizing the structure of household financial assets and improving the efficiency of household financial asset allocation is of great significance for promoting the preservation and appreciation of residents’wealth.However,in reality,due to the imperfect development of China’s financial market and the mismatch between supply and demand of financial services,it has seriously affected the diversified investment of financial assets for Chinese households.In recent years,in the context of the information age,digital finance has made rapid progress.As an emerging financial tool,digital finance can use digital technology to provide more financial services and products for households,improve residents’ financial literacy,and effectively alleviate financial exclusion and low efficiency in household financial asset allocation.In this context,this article investigates the impact of digital finance on the efficiency of household financial asset allocation.Firstly,after reviewing the relevant literature on digital finance,the efficiency of household financial asset allocation,and the relationship between the two,this article starts from the basic concepts and theoretically sorts out the impact of digital finance on the efficiency of household financial asset allocation and its mechanism of action.Secondly,based on theoretical analysis,this article uses the 2019 China Household Finance Survey(CHFS)data and the Peking University Digital Inclusive Finance Index to empirically study the impact of digital finance on household financial asset allocation efficiency using the Tobit model.At the same time,it further explores the heterogeneity factors and mechanisms of the impact of digital finance.The results indicate that:(1)Overall,digital finance can improve the efficiency of household financial asset allocation,and from the secondary dimension of digital finance,the impact of coverage breadth is the greatest,followed by depth of use,and finally the degree of digitization.(2)Heterogeneity analysis shows that the impact of digital finance on household financial behavior varies in different dimensions such as head of household age,education level,household income,urban-rural,and regional economic development level.(3)Digital finance can improve the efficiency of household financial asset allocation through three internal channels:increasing residents’income,improving residents’ financial knowledge level,and promoting the development of financial markets.Finally,based on the research findings,this article proposes the following policy recommendations:for the government,it should increase investment in the promotion of digital finance,improve the infrastructure of digital finance,and formulate digital finance development policies tailored to local conditions;At the same time,the government should improve the income distribution system,improve the income structure of residents,increase their income,and allow more residents to have the opportunity to participate in the financial market;For financial institutions,personalized financial products and services can be provided based on investors’ risk preferences and different characteristics of households to meet the investment needs of consumers of different age groups;For residents,their families should actively engage in the internet,acquire more financial knowledge through the internet,improve their financial literacy,optimize the structure of family financial asset allocation,and improve the efficiency of financial asset allocation.